Mat 540 Quiz

1.
Federal income tax laws allow a firm to deduct all legitimate business expenses when calculating its taxable income.
A) True
B) False Correct Answer(s): | False |

2.
A major criticism against sales quotas is that:
A) Activity quotas usually lead to high-pressure selling.
B) Quotas are not fair to the sales force.
C) Quotas cannot stimulate sales of profitable products.
D) Quotas are not realistically attainable.
E) It is very difficult to set quotas accurately. Correct Answer(s): | E |

3.
The most widely used type of sales quota is one based on:
A) Selling expenses.
B) Sales volume.
C) Missionary selling activities.
D) Gross margin.
E) Net profit. Correct Answer(s): | B |

4.
A well-designed plan for paying
Which of the following factors account for the growing use of e-commerce and telemarketing as a form of sales force specialization?
A) Many buyers prefer it over personal sales calls in certain selling situations.
B) Many marketers find that it increases the efficiency of their selling effort.
C) It is especially adaptable to major-account selling.
D) All of these contribute to telemarketing's growth.
E) Only A and B are correct.

55. A major limitation of the functional type of sales organization is that:
A) Functional executives can only recommend to a field sales manager regarding assignments for the salespeople.
B) Managerial specialists cannot be used effectively.
C) It cannot be used very well if the firm sells a wide line of complex, technical products.
D) Some of the line sales officers or the salespeople may be getting orders from more than one person.
E) None of these.

56. A formal organization's well-being often is maintained by a system known as:
A) The informal organization.
B) Management by objectives.
C) Team selling.
D) Internationalizing the sales operations.
E) Strategic planning.

57. A drawback to a line and staff sales organization is
79. Some firms establish a separate sales force to sell to strategic accounts.Difficulty: Easy
A) True
B) False

80. The personal characteristic of initiative implies:
A) The leaders must believe in themselves.
B) The leaders are independent, self starters.
C) The leaders have high energy levels.
D) The leaders exhibit creativity.
E) All of these.

81. High-performing reps that appreciate autonomy respond well to heavy doses of transactional leader behaviors.
A) True
B) False

82. The most widely used type of sales quota is one based on sales activities.
B) False

83. With regard to compensation, which of the following is true?
A) Companies change their compensation plans more frequently than they change their strategies.
B) Compensation plans should be reviewed frequently to make sure that they are consistent with strategies.
C) Most firms change their compensations plans at least once in two years.
D) Firms should only change their compensation program when the salespeople are dissatisfied.
E) All of these are true

84. Which of the following roles ordinarily is not a part of a buying center?
A) User.
B) Director.
C) Influencer.
D) Decider.
E)