Page 21 - Law Society of Hong Kong MPMC Manual v8 - With checklists (1 March 2018)

Practice Management Course | Unit 2
Financial Management

(5) Why must cash flow be managed properly in a practice?
(6) What are the different levels of scoping? How does the level of uncertainty over profit
compare in each case? What are the advantages of undertaking a high-detail level
scoping?
(7) Outline how you would discuss cost revisions with your client.
(8) Explain why the following are basic drivers of profitability: (1) leverage; (2) blended
rate; (3) effective chargeable hours; (4) realisation; and (5) total overheads.
(9) Why is the ‘production’ method (i.e., considering the fee revenue only) not always
reliable for assessing performance?
(10) Does practice growth always result in increase in profitability? Why or why not?

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