Consulting Foundations

Internal Quiz

Question 1 of 16
Which of these is NOT a consulting business model?
general contractor
project based
S-corporation
staff augmentation

S-corporation

Question 2 of 16
How should you estimate and manage your costs?
take a swag and monitor it
review your financials at the end of the year
use a bottoms-up pro forma P&L
use only external benchmarks

use a bottoms-up pro forma P&L

Question 3 of 16
Where should you market your services?
on the cheapest marketing platform
on every available marketing platform
only on your website
where your buyers are

where your buyers are

Question 4 of 16
_ sales is where the principals of the firm build relationships with clients, understand their needs, and sell services to meet those needs.
Subcontractor
Direct
Commissioned
Partnership

Direct

Question 5 of 16
Which type of contract governs your entire relationship with the client?
Master Services Agreement
Purchase Order
Statement of Values
Task Order

Master Services Agreement

Question 6 of 16
Which of these is a challenge of “at risk” pricing models?
regulators don’t like these arrangements
incentives are aligned with your client
measurement is difficult
you can make more money

measurement is difficult

Question 7 of 16
What is true about “work made for hire” or “work product”?
it becomes your intellectual property
the client owns it after the engagement
it doesn’t need to be defined in the contract
you get paid a higher rate for it

the client owns it after the engagement

Question 8 of 16
Which of these is NOT a downside to responding to an RFP?
they can take a lot of time
they can put pressure on your rates
they expose your true economics
they can result in big contracts

they can result in big contracts

Question 9 of 16
What drives the number of people you need to staff on your team?
employment law
the amount of work to be done
personalities
contract provisions

the amount of work to be done

Question 10 of 16
Which of the following is NOT a good technique for resolving conflict?
act passive-aggressively and hope the client gets the point
incorporate a client’s ideas into the project
reduce the client’s workload
give the client a visible role on the project

act passive-aggressively and hope the client gets the point

Question 11 of 16
When presenting your findings, be sure to present your ideas _.
in the right format
after you leave the project
with as much data as you can find
like you’re the expert

in the right format

Question 12 of 16
Why should you consult an attorney when you draft a contract?
to protect your interests and reduce risk
because the client has an attorney
to lower your profits which reduces your taxes
so your contracts sound intimidating in negotiations

to protect your interests and reduce risk

Question 13 of 16
_ tracks money coming into your business and going out of it.
Balance sheets
Cash flow
Financing
Debt

Cash flow

Question 14 of 16
A _ agreement prevents your employees from pursuing your clients after they’ve left your employment.
intellectual property
restriction
project
noncompete

noncompete

Question 15 of 16
What kind of insurance protects you when your work isn’t up to standard and it causes financial damages?
disability
workers’ compensation
Errors and omissions (E&O)
general liability

Errors and omissions (E&O)

Question 16 of 16
When you hire people to support you, you have to _ work.
generate more
avoid
do more
delegate

delegate

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Final Exam

Question 1 of 16
Which revenue model is one where you get paid based on the number of hours you work?

fee-for-service
unit pricing
project-based
ancillary fees

a) fee-for-service

Question 2 of 16
Which of these is a downside to staffing your team with contractors instead of employees?

your workforce could be less stable and predictable
you don’t have staffing flexibility to add or remove staff quickly
you carry a large fixed cost by doing so
you don’t have to pay employment taxes

a) your workforce could be less stable and predictable

Question 3 of 16
_ marketing is an approach where you share ideas and perspectives to interest your buyers.

Content-based
Interest-based
Buyer-focused
Digital

a) Content-based

Question 4 of 16
What is a major risk of having a few large clients?

sales efforts are easier
losing a big client can be very damaging
sales cycles are shorter
income is more stable

b) losing a big client can be very damaging

Question 5 of 16
A _ is when a client pays you a fixed fee for a time period regardless of how much or little they use your services.

retainer
project fee
flat rate
fixed rate

a) retainer

Question 6 of 16
Why is the first deal you negotiate with a client so important?

it generates a lot of revenue
it sets precedent for future deals
it proves you have a real business
it keeps your competitors away

b) it sets precedent for future deals

Question 7 of 16
When licensing your intellectual property to clients, which of these actions should you take?

define the license fees the client needs to pay
define whether or not they can modify your IP
specify how they can use the IP
all of these answers

d) all of these answers

Question 8 of 16
What are the five major phases of a consulting engagement?

kickoff, analysis, presentation, assessment, invoicing
proposal, kickoff, delivery, closure, archive
contracting, proposal, delivery, feedback, payment
selling, proposal, kickoff, delivery, report-out

b) proposal, kickoff, delivery, closure, archive

Question 9 of 16
When should you include clients as members of your team?

only when they demand it
when you need to save money
when the client seems bored
as often as possible

d) as often as possible

Question 10 of 16
The first step in a standard problem solving process is _.

presenting recommendations
pinning and defining the problem
conducting deep analysis
generating solutions

b) pinning and defining the problem

Question 11 of 16
What’s a possible risk of staying on with the client to implement the recommendation?

your colleagues might get jealous of you
you’ll increase the number of hours you bill the client
implementation might not go well and you’ll be blamed
the client might look smarter than you

c) implementation might not go well and you’ll be blamed

Question 12 of 16
Consider retaining an attorney once you’ve hired _.

5 employees
an accountant
10 contractors
a single employee

d) a single employee

Question 13 of 16
When using _ accounting you record the income or expense as it’s incurred.

accrual
economic
cash
algorithmic

a) accrual

Question 14 of 16
What do employees usually get that contractors don’t?

performance appraisals
pay
equipment
benefits

d) benefits

Question 15 of 16
Which of the following is a common certification you can get for your business?

fast-growing
profitable
multilingual
veteran-owned

d) veteran-owned

Question 16 of 16
Focusing too much on delivering services can cause what issue?

micromanagement and overtime
not spending enough time selling
completing projects too quickly
reduced employee morale

b) not spending enough time selling

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