Question 1

A company is likely to use a sales volume quota when management wants:

Accepted Answer

A)  A balanced effort between selling and non-selling activities.
B)  A salesperson to develop a new market.
C)  To increase its gross margin.
D)  To correct an unbalanced inventory situation by pushing sales of one item.
E)  To keep its selling expenses at 6 percent of net sales.F) B) and E)
G) D) and E)

Question 2

In which of the following situations will the salesperson most likely be on an unlimited expense-payment plan?

Accepted Answer

A)  A hardware wholesaler selling to retail stores in the midwest.
B)  A driver-salesperson for a beer distributor in Colorado.
C)  A manufacturer of small pumps who has a weak financial capability.
D)  A manufacturer of industrial valves who is opening a new territory in the southwest.
E)  Missionary salespeople working for a large soap manufacturer.F) B) and D)
G) A) and C)

Question 3

A limited payment plan for controlling sales representatives' expenses is likely to be used when:

Accepted Answer

A)  The sales reps for an aircraft manufacturer are selling a new model plane to TWA and United Air Lines.
B)  The sales reps pay their own expenses.
C)  A sales rep is selling a computer system to state government departments in Illinois.
D)  The sales reps frequently have unusual expenses.
E)  A drug wholesaler has sales reps regularly calling on drugstores in Colorado and Wyoming.F) A) and D)
G) None of the above

Question 4

There is a trend toward leasing automobiles for salespeople,rather than having the company own these cars.

Accepted Answer

A) True 
 B)False

Question 5

Regarding a fixed allowance plan for paying sales reps for their personal own car on company business:

Accepted Answer

A)  Typically the plan is quite flexible.
B)  It is more in situations where mileage varies widely among the salespeople.
C)  There is a strong trend toward the use of this plan.
D)  The plan is simple and economical to administer.
E)  It is the fairest plan because all reps are paid the same flat rate per mile per month.F) A) and C)
G) B) and D)

Question 6

A sales quota will most likely act as an aid in:

Accepted Answer

A)  Controlling and directing salespeople's activities.
B)  Helping prepare a job description.
C)  Forecasting sales.
D)  Conducting sales training programs.
E)  Establishing territories.F) C) and D)
G) B) and E)

Question 7

Which of the following is true?

Accepted Answer

A)  Buyers always prefer to buy from a salesperson than to buy over the Internet.
B)  Sellers do not usually save money if buyers buy from their web-sites.
C)  Buyers do not save money when they purchase over the Internet.
D)  Both the buyer and seller save money if the buyer buys from the seller's web-site.
E)  Both A & D are true.F) B) and C)
G) C) and D)

Question 8

Sales quotas are good measures for evaluating the productivity of salespeople.

Accepted Answer

A) True 
 B)False

Question 9

Sales quotas are never set on the basis of past sales alone.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true?

Accepted Answer

A)  Telemarketing offers transactional efficiency.
B)  High field selling costs are one reason for the rapid growth of buying on the Internet.
C)  Many buyers would rather deal over the telephone than in person.
D)  Internet selling can substantially reduce field selling costs.
E)  All of these.F) C) and D)
G) A) and B)

Question 11

Which of the following sales force business expenses is likely to arouse most questions from government tax auditors?

Accepted Answer

A)  Entertainment.
B)  Air travel.
C)  Office supplies.
D)  Lodging.
E)  Portable dictating equipment.F) A) and C)
G) None of the above

Question 12

A firm is more likely to furnish salespeople with company-owned cars when the firm has centralized maintenance and storage facilities.

Accepted Answer

A) True 
 B)False

Question 13

A sales quota based on activities performed by the sales rep is likely to decrease overemphasis on sales volume.

Accepted Answer

A) True 
 B)False

Question 14

The most widely used type of sales quota is one based on sales activities.

Accepted Answer

A) True 
 B)False

Question 15

A company is likely to lease the cars which its salespeople use when:

Accepted Answer

A)  Management has its own repair and storage facilities.
B)  A special color or design is needed.
C)  Management wants to make a careful investment in cars.
D)  The salespeople prefer to drive their own cars.
E)  The salespeople each drive about 5,000 miles a year on business.F) D) and E)
G) All of the above

Question 16

A sales quota is:

Accepted Answer

A)  A performance goal for a sales rep or some other market unit.
B)  Not related to a company's strategic marketing plan.
C)  Determines a company's sales goals.
D)  The foundation of a sales forecast.
E)  Not useful for a missionary sales force.F) All of the above
G) B) and E)

Question 17

The most common basis used for paying a bonus is:

Accepted Answer

A)  A measure of total profits minus expenses.
B)  A measure of performance against quota.
C)  A measure of sales minus expenses.
D)  A measure of the ratio profits to sales
E)  A measure of performance compared to the previous year.F) C) and D)
G) A) and B)

Question 18

An unlimited-payment plan for controlling the salespeople's expenses:

Accepted Answer

A)  Is not used very often when the sales job is a complex,technical assignment.
B)  Is not good in situations where management wants to develop a new territory.
C)  Makes it difficult for management to accurately forecast its direct selling costs.
D)  Is not very widely used.
E)  None of these is correct.F) C) and D)
G) B) and C)

Question 19

Which of the following sales force business expenses is likely to generate most questions from government tax auditors?

Accepted Answer

A)  Hotel bills.
B)  Gifts.
C)  Postage.
D)  Telephone.
E)  Taxi fares.F) C) and E)
G) A) and B)

Question 20

With respect to sales reps' expenses,the federal income tax law:

Accepted Answer

A)  Limits the number of business gifts which a firm may give.
B)  Requires some substantiation of each expense which is claimed as a deduction.
C)  Limits expenses as a percentage of a firm's sales.
D)  Is not applicable if sales reps were to pay their own expenses.
E)  Is applicable if sales reps drive their own cars on company business.F) D) and E)
G) A) and C)

Exam 10: Sales Force Quotas Expenses

Sales quotas are never set on the basis of past sales alone.

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Which of the following sales force business expenses is likely to arouse most questions from government tax auditors?

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A company is likely to use a sales volume quota when management wants:

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Which of the following sales force business expenses is likely to generate most questions from government tax auditors?

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The most widely used type of sales quota is one based on sales activities.

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A sales quota is:

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A limited payment plan for controlling sales representatives' expenses is likely to be used when:

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In which of the following situations will the salesperson most likely be on an unlimited expense-payment plan?

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Which of the following is true?

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With respect to sales reps' expenses,the federal income tax law:

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Regarding a fixed allowance plan for paying sales reps for their personal own car on company business:

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A company is likely to lease the cars which its salespeople use when:

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A sales quota will most likely act as an aid in:

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An unlimited-payment plan for controlling the salespeople's expenses:

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Which of the following statements is true?

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There is a trend toward leasing automobiles for salespeople,rather than having the company own these cars.

Correct AnswerverifiedShow Answer

A firm is more likely to furnish salespeople with company-owned cars when the firm has centralized maintenance and storage facilities.

Correct AnswerverifiedShow Answer

A sales quota based on activities performed by the sales rep is likely to decrease overemphasis on sales volume.

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Sales quotas are good measures for evaluating the productivity of salespeople.

Correct AnswerverifiedShow Answer

The most common basis used for paying a bonus is:

Correct AnswerverifiedShow Answer

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