Question 1

When Wallace earned a commission that was greater than the salary of his company's senior vice-president,he was pleased with his accomplishments.He was not so happy when the company told him that it had a _____ and that he would receive only $50,000 in commissions,about 40 percent less than what he had earned.

Accepted Answer

A)  draw 
B)  quota 
C)  base 
D)  cap 
E)  bonus

Question 2

An inside salesperson who is an account manager has the same responsibilities and duties as a field salesperson,except that all business is conducted over the phone.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the area with the most employee concerns?

Accepted Answer

A)  Territory allocation 
B)  Promotion policies 
C)  Quota assignments 
D)  Compensation 
E)  Recruitment policies

Question 4

Management uses a combination plan typically when it wants to:

Accepted Answer

A)  motivate and control the activities of salespeople. 
B)  emphasize that its sales force needs to concentrate on getting new and commissionable sales. 
C)  ensure that the sales force can easily understand exactly how it is being financially rewarded. 
D)  engage in transactional selling relationships. 
E)  accomplish all of the above.

Question 5

Which of the following best describes customer service reps?

Accepted Answer

A)  They are outside salespeople who are not concerned with setting up long-term relationships with their customers. 
B)  They are salespeople who specialize by types of products. 
C)  They are salespeople who actually do the sales presentations for key account customers. 
D)  They are inbound salespeople who handle customer concerns. 
E)  They are telemarketers who work with field salespeople to sell goods to customers.

Question 6

As a new salesperson,Marc will be working on commission.Even though he has yet to make his first sales call,he has already been paid $300.How would you categorize this $300 payment?

Accepted Answer

The answer of As a new salesperson,Marc will be working...

Question 7

Salespeople should develop relationships with manufacturing so they can make accurate promises and guarantees to customers.

Accepted Answer

A) True 
 B)False

Question 8

_____ is an extension of team selling in which members at various levels of the sales organization call on their counterparts in the buying organization.

Accepted Answer

A)  Network marketing 
B)  Viral marketing 
C)  Hierarchical selling 
D)  Direct selling 
E)  Multilevel selling

Question 9

Straight salary plans are typically used when:

Accepted Answer

A)  advertising is more important to the sale than the efforts of the salesperson. 
B)  a team of salespeople is involved in the sale. 
C)  the sale requires a long period of negotiation. 
D)  individual results of sales team members cannot be measured. 
E)  any of the above situations arises.

Question 10

What is the easiest method to evaluate the performance of salespeople?

Accepted Answer

A)  Measuring customer service levels 
B)  Measuring product knowledge 
C)  Measuring total sales 
D)  Determining how quickly management requests for information are answered 
E)  Measuring how aware each salesperson is about competition and business conditions

Question 11

Mack is a salesperson.His _____ for next year is to sell $525,000 worth of merchandise in his territory.

Accepted Answer

A)  sales quota 
B)  revenue quota 
C)  sales commission rate 
D)  budget bogey 
E)  commission bases

Question 12

Adam is a new sales representative for Harris Pillow Company,a manufacturer of pillows.In addition to his sales responsibilities,what areas of the company are likely to be important to him and how?

Accepted Answer

The answer of Adam is a new sales representative for...

Question 13

Katherine is developing a forecast for next year's sales of organic fertilizer by her company to the nation's retail gardening nurseries.She is assembling the sales estimates for her company's products by adding together the territory estimates provided by her salespeople.She is engaging in _____ forecasting.

Accepted Answer

A)  cumulative 
B)  geographic 
C)  gross margin quota 
D)  profit quota 
E)  bottom-up

Question 14

Which of the following is a major disadvantage associated with a combination compensation plan?

Accepted Answer

A)  Its inability to be used as a motivation tool 
B)  Its complexity 
C)  Its inability to include a draw 
D)  Its lack of flexibility in the context of motivating salespeople 
E)  Its lack of flexibility in the context of controlling the activities of salespeople

Question 15

House accounts are handled by field sales managers in addition to their regular duties.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements about forecasting in global markets is true?

Accepted Answer

A)  The same forecasting techniques that work in the United States work around the world. 
B)  Salespeople are especially important to the forecasting process when the executive is attempting to forecast international sales. 
C)  For international marketing forecasts, the top executives rather than the salespeople can provide the most accurate numbers. 
D)  In the bottom-up forecasting method used in international sales, little input from the salespeople is taken. 
E)  Computer simulations produce the most reliable sales forecasts for selling in international marketing.

Question 17

_____ is the amount of money paid to a salesperson at regular intervals regardless of his or her performance.

Accepted Answer

A)  Gratuity 
B)  Bonus 
C)  Incentive 
D)  Commission 
E)  Salary

Question 18

What is the difference between a bonus and a commission?

Accepted Answer

The answer of What is the difference between a bonus...

Question 19

GEC Inc.has one sales force that sells electric transformers and similar equipment to electric utility companies and another sales force for its line of consumer goods.These salespeople best exemplify:

Accepted Answer

A)  product specialists. 
B)  account specialists. 
C)  missionary salespeople. 
D)  telemarketing representatives. 
E)  geographic salespeople.

Question 20

The functions of order entry,billing,credit,and employee compensation require each company to have a customer service department.

Accepted Answer

A) True 
 B)False

Exam 16: Managing Within Your Company

An inside salesperson who is an account manager has the same responsibilities and duties as a field salesperson,except that all business is conducted over the phone.

Which of the following is the area with the most employee concerns?

Management uses a combination plan typically when it wants to:

Which of the following best describes customer service reps?

As a new salesperson,Marc will be working on commission.Even though he has yet to make his first sales call,he has already been paid $300.How would you categorize this $300 payment?

Salespeople should develop relationships with manufacturing so they can make accurate promises and guarantees to customers.

_____ is an extension of team selling in which members at various levels of the sales organization call on their counterparts in the buying organization.

Straight salary plans are typically used when:

What is the easiest method to evaluate the performance of salespeople?

Mack is a salesperson.His _____ for next year is to sell $525,000 worth of merchandise in his territory.

Adam is a new sales representative for Harris Pillow Company,a manufacturer of pillows.In addition to his sales responsibilities,what areas of the company are likely to be important to him and how?

Which of the following is a major disadvantage associated with a combination compensation plan?

House accounts are handled by field sales managers in addition to their regular duties.

Which of the following statements about forecasting in global markets is true?

_____ is the amount of money paid to a salesperson at regular intervals regardless of his or her performance.

What is the difference between a bonus and a commission?

GEC Inc.has one sales force that sells electric transformers and similar equipment to electric utility companies and another sales force for its line of consumer goods.These salespeople best exemplify:

The functions of order entry,billing,credit,and employee compensation require each company to have a customer service department.