CMC Client Relationship Management & Ethical Standards 3

Question 1

During a client meeting, a consultant realizes the proposed solution would generate additional billable work for the firm but may not be the most cost-effective option for the client. Ethical practice requires the consultant to:

Accepted Answer

Recommend the solution that best serves the client's interests and disclose any firm interest

Answer

CMC ethics mandate that client interests take precedence, and any firm interest in a recommendation must be disclosed.

Question 2

The principle of 'due care' in CMC professional standards primarily requires consultants to:

Accepted Answer

Apply competent, thorough, and diligent effort appropriate to the engagement

Answer

Due care means applying the level of competence, thoroughness, and diligence that a qualified professional would reasonably bring to an engagement.

Question 3

A client asks a consultant to sign a non-compete clause preventing work with any competitor for three years after the engagement. The consultant's most appropriate initial response is to:

Accepted Answer

Negotiate the scope and duration to ensure it is reasonable and does not unfairly restrict professional practice

Answer

Non-compete clauses should be negotiated to balance client protection with the consultant's ability to practice their profession fairly.

Question 4

Which client communication practice best reflects CMC ethical standards around managing expectations?

Accepted Answer

Setting realistic expectations from the outset and communicating proactively about risks

Answer

Ethical client management requires setting honest expectations from the start and proactively communicating risks as they emerge.

Question 5

A consultant receives a gift valued at $500 from a vendor seeking recommendation to the consultant's client. According to CMC ethical standards, the consultant should:

Accepted Answer

Decline the gift and disclose the approach to the client

Answer

Accepting gifts from parties with a business interest in the consultant's recommendations creates a conflict of interest; the gift should be declined and the approach disclosed.

(CMC) Chartered Management Consultant Practice Test

(CMC) Chartered Management Consultant Practice Test

CMC Client Relationship Management & Ethical Standards 3