MANAGEMENT ADVISORY SERVICES HO 001

Introduction to Management Advisory Services

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1. Management Advisory Services may be defined as

a. A branch of accounting concerned with the preparation of budgets, financial statements analyses and
other management reports to maximize the clients profits.
b. An area of accounting that provides technical assistance to management to increase the efficiency
and effectiveness of use of resources in achieving companys goals.
c. A service that covers everything including financial accounting, taxation and audit.
d. A service being rendered by practitioners primarily to implement a decision for the benefit of the
management.
e. Answer not given.
2. S1: Although financial and managerial accounting differ in many ways, they are similar in that both rely on
the same underlying financial data. S2: Managerial accounting is a branch of financial accounting and
serves essentially the same purposes as financial accounting.
a. Only S1 is true
d. Both are false
b. Only S2 is true
e. Cannot be determined.
c. Both are true
3. The primary purpose of MAS is to help the client
a. identify its problems and maximize its resources
b. improve the use of its resources and capabilities to achieve its objectives
c. obtain benefits that are guaranteed implicitly by the practitioner
d. become more profitable by relying upon the practitioners existing personal knowledge about the
clients business
e. document and quantify its future plans without impairing the practitioners objectivity or allowing the
practitioner to assume the role of management.
4. S1: Increase in complexity in managing and conducting business can contribute to the growth of
management consultancy. S2: Lack of competent staff by businesses can also contribute to the growth of
management consultancy.
a. Only S1 is true
d. Both are false
b. Only S2 is true
e. Cannot be determined.
c. Both are true
5. Which of the following is not an advantage of a CPA over other professionals in the practice of MAS?
a. They are equipped with technical knowledge about accounting and taxation which are crucial areas
in the practice of MAS.
b. They are members of a professional organization duly recognized by the government and holds to the
code of ethics being implemented by this organization.
c. They are familiar with the clients business due to their wide knowledge about different business
industries acquired through their practice of accounting.
d. They are more credible and possess the highest qualifications among the professionals.
e. Answer not given.
6. MAS consultation as opposed to MAS engagement generally involves advice or information given by a
CPA or practitioner based upon
a. Existing personal knowledge about the client
b. An analytical approach and process
c. Information obtained during an examination of the clients financial statements
d. The results of an operational audit
e. Answer not given
7. Which of the following is the least characteristic of MAS?
a. It relates both to the future and past.
b. It involves a wide range of assignments.
c. It requires highly qualified staff.
d. It involves usually nonrecurring engagements.
e. Answer not given.
8. Management advisory services is basically the same as management consultancy, except that
a. Management consultancy is broader than management advisory services.
b. Management advisory is exclusive to professionals like CPAs and engineers
c. CPAs are not allowed by law to call themselves management consultants.
d. Management advisory aims to give advice while management consultancy is simply for diagnosis
purposes.
e. Answer not given.
9. MAS can relate to the following areas except:

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a.
b.
c.
d.
e.

the basic management functions

the introduction of new ideas, concepts and methods to management
the improvement of policies, procedures, systems, methods and personal relationships
the application and use of management accounting, control systems and mathematical techniques
answer not given

10. S1: The consultant has the responsibility to determine the scope of services he is competent to offer, subject
to the pronouncements of his profession. S2: The consultant is expected to maintain independence to
enable him to render professional judgment.
a. Only S1 is true
d. Both are false
b. Only S2 is true
e. Cannot be determined
c. Both are true
11. A CPAs scope of MAS is broad and covers the following except
a. Change management engagement
c. audit engagement e. answer not given
b. Computerization engagement
d. Re-engineering job
12. S1: MAS may be rendered by any person, provided that he is competent enough for such engagement. S2:
Audit may be rendered by any person provided that he is competent enough for such engagement.
a. Only S1 is true
d. Both are false
b. Only S2 is true
e. Cannot be determined
c. Both are true
13. MAS areas which are not normally related to accounting and finance function may include
a. preparation of accounting systems and procedure manuals
b. development of management oriented accounting and reporting system
c. cost reduction studies
d. establishment of budgetary controls
e. answer not given
14. The following relates to MAS by CPAs except:
a. Financial analysis for a project feasibility study
b. Design and installation of accounting systems
c. Cost analysis of major investment decisions
d. None of the above
e. Answer not given
15. Which is not classifiable as MAS by CPAs?
a. Lease or buy analysis
b. Information systems
c. Financial planning

d. public relations work

e. assistance in budget preparation

16. MAS services of CPAs cover the following except:

a. Audit, tax and legal services
b. Organizational development & planning
c. system design, development & implementation
d. Project feasibility study
e. Answer not given
17. The MAS engagement that involves providing assistance to management in relation to planning, controlling
and decision making.
a. Financial management
d. taxation
b. Management accounting
e. auditing
c. financial accounting
18. Management advisory services may also be called as ____ , except
a. Business Support Services
b. Business and Financial Advisory Services
c. Non-assurance Services
d. Corporate Finance Services
e. Answer not given.
19. A management science which uses mathematical techniques like linear programming, queuing theory and
simulation to solve complex operational problems.
a. PERT-CPM
c. operations research
b. Industrial engineering
d. sensitivity analysis

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20. Services rendered to troubled businesses by emphasizing the implementation, rationalization and recovery
programs designed to rebuild value
a. Business recovery services
d. valuation services
b. Risk management services
d. dispute analysis and investigation
21. Cost accounting is an area of MAS. Which of the following is least likely a useful knowledge about cost
accounting for MAS practitioners?
a. Development of standard cost system.
b. Cost analysis and control
c. Variance analysis
d. Investigation of variances
e. Cannot be determined
22. MAS classified as usual services include the following except:
a. design and installation of accounting systems
b. assisting in bankruptcy and receivership proceedings
c. suggestions for improvements in internal control system
d. assistance in preparation of forecasts and budgets
e. answer not given
23. MAS classified as somewhat specialized services include the following except:
a. calculations of government contracts and allocating costs in compliance with reporting requirement
b. advising on accounting and tax matters relative to estate planning in cooperation with legal and
insurance counsel
c. giving advice on dividend policy and plans for expansion
d. analysis of financial and operating statements for management, shareholders and creditors.
e. Answer not given
24. MAS classified as highly specialized services include the following except:
a. research and evaluation of alternative methods of handling a transaction for its effect on finance and
tax consequence
b. auditing management policies for their effectiveness
c. conducting motion studies for standard cost system
d. evaluating the desirability of a particular area of plant location
e. Answer not given
25. Which statement is incorrect?
a. Consultant is considered a catalyst for change that can assist management in the administration o f the
business entity.
b. A consultant is hired because generally he is considered independent, objective and detached to the
problems faced by the client.
c. An experienced management consultant possesses special knowledge, skills and a variety of personal
attributes that make him the most desirable candidate to undertake MAS engagement involving his
area of expertise
d. The use of consultants is generally less expensive to the company than hiring full time new managers
and employees to provide professional advisory services.
e. None of the above
26. S1: Management consultancy is an exclusive filed of practice for CPAs and is regulated by law. S2: As an
advisory expert, the CPA should take responsibility for making policy and management decisions in the MAS
engagements he has performed.
a. Both statements are true
c. S1 is true
b. Both statements are false
d. S2 is true
27. CPAs are in a more advantageous position than members of other professions to render MAS because
a. most CPAs are highly educated
b. a CPA is a person with recognized standing
c. the CPA is already familiar with the client business and enjoy the clients confidence
d. only CPAs are capable of rendering MAS.
28. The following are characteristics of MAS except:
a. MAS engagements are nonrecurring
b. Actions to be taken are identified, the benefits of which will be received in the future.
c. In MAS engagements, the nature of work involved requires a lesser need for junior assistance.
d. A wider variety of assignments are encountered in MAS than in audit engagement.
e. None of the above.

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29. In providing MAS, the consultant applies an analytical approach and process which typically involves the
following, except:
a. ascertaining the pertinent facts and circumstances
b. seeking and identifying objectives
c. defining the problem or opportunity for improvement
d. evaluating and implementing possible solutions
e. answer not given
30. The analytic approach and process in MAS engagements involves the following except
a. Problem definition
b. Identification and analysis of alternative solution
c. Selection of the most desirable alternative
d. Implementation of the chosen solution
e. answer not given
31. Which statement is incorrect?
a. full scope engagements require client representations from both the working and decision making
levels
b. In carrying out full scope engagements, the consultant should participate up to implementation stage
and should see to it the client management accepts overall responsibility for implementation of the
chosen course of action
c. the consultants role in full scope engagement should be limited to that of an objective adviser; and in
the implementation stage, his job is merely to provide technical assistance, degrees of which depend
on the knowledge and experience available in the clients organization
d. once the implementation stage is concluded, the consultants participation is also concluded and only
the consultants personnel remain to carry on the solution
32. The problem definition phase of the problem solving process begins with the initial recognition of a
symptom pointing to the problem and ends with the complete problem description. Among the key facts
of the problem description are the following except:
a. Human elements involved in the problem
d. Tracking system related to the problem
b. Support system surrounding the problem
e. answer not given
c. specific person in charge of managing the problem
33. The following pitfalls should be avoided by the consultant in identifying the problem in a consultancy
engagement, except:
a. Mistaking symptoms for the underlying problem
b. Unqualified acceptance of the opinion of others
c. Overlooking the various causes of the problem
d. All of the above
e. None of the above
34. Solution development phase of the problem solving process involves the following steps:
1. Detailed development of selected solution 3. Evaluation of alternative solution
2. Choice of preferred alternative solution
4. Generation of alternative solution
In what order should the above listed activities be performed?
a. 1, 2, 3, 4
d. 4, 3, 1, 2
b. 2, 1, 3, 4
e. answer not given
c. 4, 3, 2, 1
35. Among the sources of information that the consultant could avail of are external sources. Information about
the market conditions could best be provided by:
a. Industry reports
d. customers
b. Database retrieval systems
e. answer not given
c. distributors
36. Which is not a MAS practice standard?
a. In performing MAS, a practitioner must act with integrity and objectivity and be independent in mental
attitude
b. MAS engagement is to be performed by a person having adequate technical training as management
consultant
c. MAS engagement is to be performed by practitioners having competence in the analytical approach
and process and in the technical subject matter under consideration
d. Before undertaking a MAS engagement, a practitioner is to notify the client of any reservations he has
regarding anticipated benefits

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37. S1: Before accepting an engagement, a practitioner is to inform his client of all significant matters related to
the engagement. S2: MAS practice standards are applicable only to organized MAS engagements and
therefore not practical to informal advice engagement.
a. Both statements are true
c. S1 is true
b. Both statements are false
d. S2 is true
38. The following are factors considered in determining the scope of MAS that a CPA may render except:
a. Independence
d. requirements for specialization
b. Competence
e. answer not given
c. Professional fee
39. The following are major factors to be considered when defining the target level of competence of MAS
practitioner, except:
a. scope of practice area
d. service variety
b. client requirements
e. service delivery capability
c. investment required
40. To attain the highest standards of professionalism, highest level of performance and meet public interest
requirement, a CPA who provides MAS should meet the following basic requirement except:
a. Credibility
d. confidence
b. Professionalism
e. answer not given
c. world class facilities
41. To achieve the objectives of the accountancy profession, CPAs, including those who render MAS should
observe the following principles except:
a. Integrity
b. Confidentiality
c. Careful selection of clients to include only big and financially capable business entities
d. knowledge of up to date technical and professional standards
42. A personal attribute of a consultant which ensures that his findings and recommendations are free of
intentional distortions or misstatements.
a. Independence in mental attitude
d. objectivity
b. Integrity
e. answer not given
c. maturity
43. Which action of a CPA is not acceptable?
a. A CPA represents 3 major players in the industry in rationalizing the industrys incentives before
government public hearings
b. A CPA provides consulting services to 2 major competing clients.
c. A CPA provides consulting services to an existing audit client
d. A CPA share with a new and substantial client information about another client belonging in the same
industry
e. All of the above
44. The ability of a consultant to maintain his role as an objective adviser without making any attempt to make
decisions for the client.
a. Independence in mental attitude
c. objectivity
b. Integrity
d. maturity
45. In which situation is the independence of a CPA rendering MAS not impaired?
a. The CPA performs services wherein he is in effect, acting as employee of the client
b. The CPA loses objectivity and acts in a manner advocating for the interest of the client
c. The CPA performs decision making for the client
d. The CPA limits his services to presenting recommendations or giving of advice
e. Answer not given
46. Randy Manzano is the external auditor of UC Inc. He was asked to perform MAS for UC
Inc. in the area of inventory management, which is believed to be one area of inefficiency of the
companys operations. Which action would impair Mr. Manzanos independence?
a. Identify the inventory management problem as caused by the presently operative procedures in the
purchasing, receiving and issuance operations.
b. Study and evaluate the inventory management problem and suggest solutions.
c. Develop a time schedule for implementation of the solution to be adapted by UC Inc.
d. Supervise management of purchasing, receiving and issuance operations
e. None of the above

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47. Refers to the consultants technical qualifications and ability to supervise the personnel assigned, evaluate
the quality of work performed and accept responsibility to the client for successful completion of the
engagement.
a. Competence
c. Competence in MAS
b. Competence in professional work
d. all of the above
48. Which statement does not refer to competence of CPAs in MAS?
a. It is acquired by education, actual experience, research and actual performance of MAS.
b. It refers to the technical qualifications of the practitioner, his ability to supervise and evaluate the quality
of work of his staff and being responsible for the successful completion of the project
c. It is the ability to identify clients needs, use the analytical process, actual experience and research.
d. It must be retained in the rendition work and can be impaired if the CPA performs decision making for
the client.
e. Answer not given
49. Mr. Armand Bolislis is a distinguished CPA providing auditing services to different clients. UC Inc. asked him to
study the companys executive compensation package. He has no prior experience in this area. What will
be the most appropriate action of Mr. Bolislis?
a. Decline the engagement since he cant expect to complete it without undertaking research in the
area
b. Accept the engagement and issue a report which may guarantee the achievement of results
indicated by his recommended actions
c. Accept the engagement and study, research and or consult with knowledgeable experts in order to
increase his competences
d. Accept the engagement and perform it in accordance to GAAS.
e. Answer not given
50. Due professional care in the performance of MAS implies the following except:
a. Diligence and appropriate attention in carrying out the engagement
b. Systematic critical review of the work done and judgment exercised
c. Infallibility
d. None of the above
51. The following statements pertaining to the CPAs practice of MAS are true except
a. A CPA may not designate himself as a management consultant although he may actually be engaged
in the said practice
b. A CPA would not violate the Accountancy Law if he enters into a partnership with a non-CPA for the
exclusive purpose of rendering MAS.
c. To maintain independence, a CPA should limit his services to that of recommendation to the client.
d. None of the above
e. Answer not given
52. Which statement/s is/are not true?
a. In the rendition of MAS, independence must be observed so as to maintain impartiality and objectivity.
b. All provisions of the code of professional ethics are applicable to the practice of MAS except those rules
related to the expression of opinion on financial statements.
c. Before accepting an engagement, a practitioner should notify the client of any reservations he has
regarding anticipated benefits
d. None of the above
53. A personal attribute of a consultant which refer to his ability to view situations in perspective and to take
action needed on a calm and controlled basis without being diverted from a sound, logical and ethical
course by outside pressure.
a. Judgment
d. psychological maturity
b. Courage
e. answer not given
c. Physiological balance
54. A consultants ability to identify what information is needed in a particular situation is an example of;
a. Analytical skills
d. project management skills
b. Interpersonal skills
e. all of the above
c. Rapport building skills
55. Project management skills require the following except:
a. Ability to define objectives and outcomes
b. Ability to develop formal plans
c. Ability to sequence and prioritize tasks
d. Ability to accept numerous clients which limits his time per client
e. None of the above

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56. In which situation is an MAS practitioner not allowed to disclose confidential information?
a. When disclosure is authorized by client
b. To respond to an inquiry of shareholders and creditors of the client
c. When disclosure is necessary to protect the professional interests of the MAS practitioner in legal
proceedings
d. To produce documents to give evidence in the course of legal proceedings
e. None of the above
57. A CPA should reject an MAS engagement if
a. it would require him to make management decisions for an audit client
b. his recommendations are to be subject to review by the client
c. he audits the F/S of a subsidiary of the prospective client
d. the proposed engagement is not accounting related
e. answer not given
58. Before entering a consulting practice, the prospective consultant should conduct market research to
identify opportunities in the market place. This involves the following except:
a. Study of the listing of actively practicing consultants
b. Survey of local firms to determine which are offering consulting services
c. News release in a newspaper or television about the opening of a consultancy firm
d. Identification of new services that may provide a competitive edge.
e. All of the above
59. Consultants could trace most of their current engagements to the following sources except:
a. Speeches in professional and business organizations
b. Referrals from clients
c. Advertisement in radio, TV and newspaper
d. Books written
e. None of the above
60. Which activity is not involved during the negotiation stage of MAS engagement?
a. A survey to ascertain the problem of the client and what is required to reach a solution
b. Identification of the end product of the assignment
c. Agreement on the role to be performed by the practitioner
d. Agreement on the final fee to be charged for the service of the practitioner
e. None of the above
61. An offer of service, which when accepted, becomes a contractual agreement.
a. Proposal letter
d. Engagement letter
b. Confirmation
e. answer not given
c. Contract
62. The engagement proposal letter generally includes the following except:
a. Objectives and benefits
d. fee and billing arrangement
b. scope of work
e. role of consultant and client
c. engagement team members
63. The objectives of an engagement program include the following except:
a. To facilitate time and efficiency control over personnel assigned to the engagement
b. To provide means for arranging, distributing and assigning responsibility for various segments of an
engagement
c. To provide a means for evaluating whether all segments of the engagement have in fact been
completed
d. To provide a means of determining the exact amount and timing of bill to the client
e. Answer not given
64. The most important factor in selecting an engagement team is to assign consultants:
a. who have high imaginative thinking or unusual skill in the interpretation and use of financial and
statistical data.
b. with the appropriate skills, experience and types of thinking to deal with the clients problems
c. with prior experience in the clients industry
d. with combination of skills and experience in various business functional areas as well as in different
industries
65. During interviews with client staff, the consultant should avoid:
a. Confirming the understanding of the interviewees job responsibilities
b. Avoiding actions that projects a know it all person

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c. Conducting the interview too lengthy

d. Pursuing in a pleasant way, vague answers, until questions are fully clarified
e. None of the above
66. The following are ways through which the consultant can establish an attitude of helpfulness towards the
client staff, except:
a. Maintain an open-door policy
b. Welcoming questions and communications with anyone at any time
c. Arrange meetings for discussion of the problem and provide written summaries of the meetings
d. Require employees to submit to him a written memo on matters they want to be clarified about
e. None of the above
67. Which is a potential barrier to effective communication between a client and practitioner?
a. Ability to understand technical language
b. Adequate background or knowledge of subject matter discussed with the client
c. Know it all attitude and or prejudice of some personnel of client or practitioner
d. Positive attitude to possible changes
e. None of the above
68. In MAS engagements, sufficient relevant data should be obtained, documented and evaluated to
develop conclusions and recommendations. Which need not be documented?
a. Evidences obtained and its source
b. Alternatives considered
c. Analytical process leading to specific recommendations
d. None of the above
69. The PICPA Committee on MAS has stated its belief that a CPA should not undertake MAS engagement for
implementation of the CPAs recommendation unless the:
a. Client does not understand the nature & implications of recommended course of action
b. Client has made a decision to proceed with implementation based on his complete understanding and
consideration of alternatives.
c. Client does not have sufficient expertise within his organization to comprehend the significance of the
changes being made
d. CPA withdraws as independent auditor for the client.
e. Answer is not given
70. The following can generally conduct a post implementation evaluation except:
a. Special audit team from the managers of the client
b. An internal audit team
c. External team of consultants
d. Independent external audit team
e. None of the above
71. Which business condition cant be used by the consultant to justify abandonment of client?
a. overly specialized
b. Unchallenging
c. Beneath the growing fee structure
d. The clients competitor engaged the services of the practitioner for a higher fee
e. None of the above
72. Which statement is correct?
a. In practicing MAS, it is desirable but not necessary that the practitioner acts with integrity, objectivity
and independence in mental attitude.
b. To be a consultant, one must pass a government licensure examination given for that purpose
c. The CPAs competence, coupled with familiarity with the clients operations, places him in logical
position to perform MAS for that client.
d. If a consulting firm is not reasonably competent to undertake specific MAS engagement, it should
employ a specialist to undertake the job on temporary basis.
e. None of the above
73. Which statement is correct?
a. Documentation is not as essential in an MAS engagement as it is in Audit engagement.
b. A CPA MAS practitioner need not be concerned with independence in his clients since the overriding
consideration for the MAS engagement is competence.
c. MAS by independent CPA may involve making decisions for client.
d. To maintain his independence, a CPA limits his services to that of recommending and designing an
accounting system but leave the actual implementation and installation to the client.
e. None of the above

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74. The following statements are incorrect except:

a. MAS include the consultative services to management in decision making.
b. MAS include decision making services performed by the practitioner for management.
c. Expertise in MAS is acquired education, auditing and other experience as well as actual performance of
MAS.
d. A management letter is a report submitted by the practitioner to management after the review of
management controls.
e. Answer not given
75. How should a management consultant undertake to secure a consulting engagement when a prospective
client has inquired about the services he offers?
a. The consultant should present the value of his services as forcefully as he can because the potential
client will benefit from the use of these services.
b. The consultant should call to the prospective client, listen to an explanation of the problem, and then
agree to do as the prospective client wishes provided the work lies within the field of the consultants
competence.
c. The consultant should diagnose the existing problem by personal investigation, help the prospective
client define it clearly, consider various methods of solutions, recommend the approach which will best
meet the requirement of the situation and make sure that the prospective client understands what the
consultant purposes to do, how long it will take, how much it will cost and what probable benefits will
result.
d. The consultant should recommend the technique or procedure which will solve the prospective clients
problem and should refer him to other clients who have used the same technique or procedure
successfully in the past.
e. Answer not given.
76. Which of the following is not a qualification of a CPA in a MAS practice?
a. Professional and technical competence.
b. Analytical experience in problem solving.
c. Auditor of the client.
d. Professional independence, objectivity and integrity
77. Which of the following statements is True?
a. Adequate training and experience in both the analytical approach and process in the particular
undertaking are requisites for the CPA to be involved in a management service engagement.
b. A CPA with MBA and Ph.D. degrees is automatically qualified to render management services.
c. Competence as a standard n the rendition of management services by a CPA may be equated to
having excellent scholarly preparation to include the usual baccalaureate degree, an MBA and other
post graduate studies.
d. A certified public accountant by virtue of having the necessary academic preparation and by hurdling
the licensure examinations required to have a CPA license can readily render management services to
the public.
e. Answer not given.
78. The fields of cost accounting and financial management are among the MAS areas that are normally
related to the accounting and finance functions. Financial management cases may involve the following
except
a. Establishment of capital budgeting procedures
b. Study of the cost of capital and cost of debt
c. Establishment of operating and cash budgets
d. Variance analysis
e. Answer not given
79. Which of the following is not an area related to the performance of management services by independent
accounting firms?
a. Performing management functions and making decisions
b. Introducing new ideas, concepts and methods to management
c. Improving existing policies, methods and procedures
d. Performing special studies, preparing recommendations, and formulating plans and programs.
e. Answer not given.
80. The following characterize management advisory services except
a. Involve decision for the future
b. Broader in scope and varied in nature
c. Utilize more junior staff than senior member of the firm
d. Relate to specific problems expert help is required.

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e. Answer not given.

81. The most important factor in selecting an engagement team is to assign consultants:
a. With prior experience in the clients industry
b. With a combination of skills and experience in various business functional areas as well as in different
industries.
c. Who are likely to employ different approaches to problem solving such as highly imaginative thinking, or
unusual skill in the interpretation and use of financial and statistical data.
d. With the appropriate skills and experience and types of thinking to deal with the clients problems.
82. Which of the following is not an area related to the performance of management services by independent
accounting firms?
a. Performing management functions and making decisions
b. Introducing new ideas, concepts and methods to management
c. Improving existing policies, methods and procedures
d. Performing special studies, preparing recommendations, and formulating plans and programs.
e. Answer not given.
83. Which of the following is not covered by the MAS Practice Standards by AICPA?
a. In performing MAS, a practitioner must act with integrity and objectivity and be independent in mental
attitude.
b. Engagements are to be performed by a practitioner having competence in the analytical approach
and process, and in the technical subject matter under consideration.
c. Engagements are to be adequately planned, supervised and controlled.
d. All significant matters relating to the result of the engagement are to be communicated to the client.
e. Accurate data is to be obtained, documented, and evaluated in developing conclusions and
recommendations.
84. S1: Prior to accepting and engagement, a practitioner shall notify the client of any reservation he has
regarding anticipated benefits. S2: Before undertaking an engagement, a practitioner shall inform his client
of all significant matter related in the engagement.
a. Only S1 is true
b. Only S2 is true
c. Both are true
d. Both are false
e. Cannot be determined
a. the market for similar services.

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