Question 1

When sales-volume quotas are based on territorial potentials:

Accepted Answer

A)  For psychological reasons,quotas should usually be set a little lower than the expected potential.
B)  Territorial sales potentials are not a good base for setting volume quotas.
C)  Sometimes quotas based on territorial potentials have to be adjusted downward because a new rep is covering that district.
D)  Quotas should be related directly to territorial sales potential with no further changes being made.
E)  It is a good idea to base quotas on last year's sales alone.F) C) and E)
G) A) and D)

Question 2

A sales quota may be assigned to a sales rep,and/or to a district office and/or to a distributor.

Accepted Answer

A) True 
 B)False

Question 3

To assist in the evaluation of the productivity of salespeople,management can use:

Accepted Answer

A)  Sales training Program.
B)  Salary compensation plan.
C)  Sales quota plan.
D)  Sales force selection system.
E)  Sales organization structure.F) A) and D)
G) All of the above

Question 4

An expense control plan that sets selling expenses as a percentage of sales will encourage the development of new territories.

Accepted Answer

A) True 
 B)False

Question 5

Federal income tax laws allow a firm to deduct all legitimate business expenses when calculating its taxable income.

Accepted Answer

A) True 
 B)False

Question 6

A sales quota usually is:

Accepted Answer

A)  Needed before territories can be established.
B)  A key element in assimilating new people into a sales force.
C)  A major aid in determining a company's sales potential.
D)  A foundation of a training program.
E)  None of these.F) All of the above
G) A) and B)

Question 7

For which of the following sales jobs will management most likely use an activity quota?

Accepted Answer

A)  Wholesale hardware sales rep.
B)  Life insurance sales rep.
C)  Liquor distributor's sales reps calling on retailers.
D)  Wholesaler's salespeople selling office supplies.
E)  Missionary sales rep for a soap manufacturer calling on grocery stores.F) C) and E)
G) C) and D)

Question 8

Which of the following is usually excluded from list of legitimate travel and business expenses?

Accepted Answer

A)  Office supplies purchased by sales rep.
B)  Lodging costs when away on business.
C)  Expenses of family car related to business use of the car.
D)  Business entertainment above $25 a day.
E)  None of these is excluded.F) B) and C)
G) None of the above

Question 9

An activity quota will probably be used when management wants to:

Accepted Answer

A)  Pay salespeople a straight commission on net sales.
B)  Boost the sales of high margin items.
C)  Enter and develop a new market.
D)  Decrease the time devoted to missionary selling tasks.
E)  Discourage overlapping territories.F) A) and B)
G) B) and D)

Question 10

Sales quotas are rarely used in conjunction with sales contests.

Accepted Answer

A) True 
 B)False

Question 11

A performance goal assigned for a specific period of time to a marketing unit such as a salesperson or a branch office is:

Accepted Answer

A)  An alternative basis for determining the company's sales goals.
B)  The foundation for a company's strategic marketing plan.
C)  A measure of a company's market share.
D)  Not useful for a missionary sales force.
E)  A sales quota.F) B) and D)
G) A) and B)

Question 12

Management will most likely prefer to furnish company-owned cars for the sales force when:

Accepted Answer

A)  The firm is financially weak.
B)  Each sales rep drives about 5,000 miles a year on company business.
C)  The sales force is small.
D)  No special color or design is needed.
E)  The company has centralized storage and repair facilities.F) C) and D)
G) B) and E)

Question 13

A sales quota is a performance goal assigned to a marketing unit for a specific marketing unit for a specific period of time.

Accepted Answer

A) True 
 B)False

Question 14

A sales quota is:

Accepted Answer

A)  A useful tool for designing a sales organizational structure.
B)  A performance goal.
C)  Not useful for improving sales force morale.
D)  Cannot be used when selling in foreign markets.
E)  None of these.F) A) and B)
G) A) and C)

Question 15

A weakness in the limited payment plan for reimbursing salespeople's expenses is that it:

Accepted Answer

A)  Is a poor plan for salespeople with regular,routine duties.
B)  Cannot be used when the reps are paid a straight commission.
C)  Encourages expense account padding.
D)  Is inflexible.
E)  Discourages non-selling activities.F) B) and D)
G) A) and E)

Question 16

Regarding the relationship between sales force expenses and strategic marketing planning:

Accepted Answer

A)  There really is no relationship between these two concepts.
B)  Most firms use their expense account policy primarily as a major tool for recruiting salespeople.
C)  The expense control policies can be a significant factor in implementing marketing strategies.
D)  Firms no longer use expense accounts to attract customers because today that is considered to be bribery.
E)  None of these is correct.F) B) and D)
G) A) and B)

Question 17

Regarding sales expenses fewer companies today are willing to pay for car phones or home photocopiers.

Accepted Answer

A) True 
 B)False

Question 18

A characteristic of a sound sales force expense plan is that it:

Accepted Answer

A)  Is designed so that the reps neither profit nor lose under the plan.
B)  Does not hamper the performance of selling activities.
C)  Is simple and economical to administer.
D)  Does All of these.
E)  Accomplishes only two of A-B-C.F) A) and E)
G) B) and D)

Question 19

In many sales situations,salespeople are pushing their smaller customer to purchase via their company's web site.

Accepted Answer

A) True 
 B)False

Question 20

When a firm uses the straight commission method to pay its sales reps,then management can increase its control over these people by having them pay their own expenses out of their commissions.

Accepted Answer

A) True 
 B)False

Exam 10: Sales Force Quotas Expenses

An activity quota will probably be used when management wants to:

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A performance goal assigned for a specific period of time to a marketing unit such as a salesperson or a branch office is:

Correct AnswerverifiedShow Answer

To assist in the evaluation of the productivity of salespeople,management can use:

Correct AnswerverifiedShow Answer

A sales quota is a performance goal assigned to a marketing unit for a specific marketing unit for a specific period of time.

Correct AnswerverifiedShow Answer

A sales quota may be assigned to a sales rep,and/or to a district office and/or to a distributor.

Correct AnswerverifiedShow Answer

A sales quota is:

Correct AnswerverifiedShow Answer

For which of the following sales jobs will management most likely use an activity quota?

Correct AnswerverifiedShow Answer

When a firm uses the straight commission method to pay its sales reps,then management can increase its control over these people by having them pay their own expenses out of their commissions.

Correct AnswerverifiedShow Answer

An expense control plan that sets selling expenses as a percentage of sales will encourage the development of new territories.

Correct AnswerverifiedShow Answer

Sales quotas are rarely used in conjunction with sales contests.

Correct AnswerverifiedShow Answer

Regarding the relationship between sales force expenses and strategic marketing planning:

Correct AnswerverifiedShow Answer

Federal income tax laws allow a firm to deduct all legitimate business expenses when calculating its taxable income.

Correct AnswerverifiedShow Answer

In many sales situations,salespeople are pushing their smaller customer to purchase via their company's web site.

Correct AnswerverifiedShow Answer

Management will most likely prefer to furnish company-owned cars for the sales force when:

Correct AnswerverifiedShow Answer

A sales quota usually is:

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Which of the following is usually excluded from list of legitimate travel and business expenses?

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A characteristic of a sound sales force expense plan is that it:

Correct AnswerverifiedShow Answer

Regarding sales expenses fewer companies today are willing to pay for car phones or home photocopiers.

Correct AnswerverifiedShow Answer

A weakness in the limited payment plan for reimbursing salespeople's expenses is that it:

Correct AnswerverifiedShow Answer

When sales-volume quotas are based on territorial potentials:

Correct AnswerverifiedShow Answer

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