Question

All of the following are mentioned in the passages as circumstances in which professional service firms can benefit from offering an unconditional guarantee EXCEPT :

• A. The firm is having difficulty retaining its clients of long standing.
• B. The firm charges substantial fees for its services.
• C. The adverse effects of poor performance by the firm are significant for the client.
• D. The client is reluctant to incur risk.

Answer 1

The correct option is A

The firm is having difficulty retaining its clients of long standing.

The passage explicitly states that offering unconditional guarantees works best with first-time clients, but no mention is made of the relative success of this practice with clients of long standing.