Question 1

The terms and conditions of sale include shipping costs. The seller quotes an FOB price. The letters FOB stand for:
A)feedback on business
B)frequency of business
C)function of buyer
D)freight of buyer
E)free on board

Accepted Answer

FOB stands for "Free on Board", which means that the seller assumes responsibility for the goods until they are loaded onto a shipping vessel, at which point ownership and responsibility transfers to the buyer. The price quoted by the seller is therefore for the goods only and does not include any shipping costs.

Question 2

The owner of store that specializes in birds ordered $200 of Tropican food from Hagen Avicultural Research Institute. On the invoice dated October 18 that Hagen sent to the store owner was written, "3/10, EOM." If the store owner pays the bill in full on November 12, what amount will she have to pay?
A)$147.00
B)$189.00
C)$203.70
D)$200.00
E)$216.30

Accepted Answer

The term "3/10, EOM" means a 3% discount is available if the bill is paid within 10 days after the end of the month. Since the bill is paid on November 12, which is after the discount period, the store owner must pay the full amount of $200.00.

Question 3

A salesperson must uncover the reasons he or she was unable to obtain commitment.

Accepted Answer

Yes, a salesperson must reflect on the reasons they were unable to obtain a commitment so that they can identify areas for improvement and adjust their approach in future sales interactions.

Question 4

Which of the following is an example of a salesperson who has obtained commitment?
A)Anselmo has decided to call some of Markus's references next week.
B)Obadiah scheduled a co-op advertising program for Margaret at the Vincent Street Drug Store.
C)Hugh agreed to let Yvette return next week to analyze his company's computer network.
D)Mary Ruth gets an order from Hammond's Nursery for two dozen sugar maple trees.
E)All of the above are examples of salespeople who have obtained commitment.

Accepted Answer

The answer of Which of the following is an example...

Question 5

Kendra is the new owner of a catering company. She got an invoice for a new walk-in refrigerator in the mail which contained the phrase "2/10, n/30." How would you explain this to her?
A)It means she can earn a ten percent discount if she pays within two days of receiving the bill; otherwise it is due at the end of the month.
B)It means she can earn a twenty percent discount if she pays within ten days of receiving the bill; otherwise it is due at the end of the month.
C)It means she can earn a two percent discount if she pays within ten days of the invoice date; otherwise the full amount is due in thirty days.
D)It means she can earn a thirty percent discount if she pays within two days of receiving the bill, or a ten percent discount if she pays by the end of the month.
E)It means she can earn a ten percent discount if she pays within two days of receiving the bill; she will pay a ten percent penalty if it is not paid within thirty days.

Accepted Answer

"2/10, n/30" is a standard payment term used in invoices in the business world, where "2" means she can earn a two percent discount if she pays within ten days of the invoice date, "10" specifies the number of days within which the early payment discount can be earned, "n" stands for net, meaning the full amount is due in thirty days. Therefore, Kendra can get a two percent discount if she pays the invoice within ten days or pay the full amount within thirty days.

Question 6

Most sales take only one call to complete.

Accepted Answer

According to statistics, it takes an average of 8 calls to reach a prospect and make a sale.

Question 7

Why is it important for salespeople to become skilled in obtaining prospect commitment?
A)It helps in need discovery.
B)It helps in handling objections.
C)It is intrinsically and extrinsically rewarding.
D)It increases their need to take part in sales training.
E)Skill in obtaining prospect commitment is important for all of the above reasons.

Accepted Answer

Obtaining prospect commitment is rewarding because it leads to successful sales outcomes, which can be intrinsically satisfying and extrinsically beneficial through commissions or bonuses.

Question 8

If Lewis appears overly eager or excited when he senses his prospects are about to commit, they may interpret his actions as nonverbal cues indicating he is dishonest.

Accepted Answer

When someone appears overly eager or excited, it can be a red flag to others and may cause them to question the person's sincerity or honesty. Therefore, Lewis's prospects may interpret his behavior as nonverbal cues indicating he is dishonest.

Question 9

When closing a sale, there should be no surprises for the buyer.

Accepted Answer

It is important for the buyer to have full transparency and understanding of the terms and conditions, pricing and product details before making a purchase. Springing surprises on the buyer during the closing process can lead to distrust and a negative experience.

Question 10

In the opening profile Todd Pollock describes successful inside salespeople as having all of the following qualities EXCEPT:
A)dissonance.
B)hard work.
C)creativity.
D)organization.
E)humility.

Accepted Answer

Dissonance is not a quality that Todd Pollock describes as necessary for successful inside salespeople. The qualities he does mention are hard work, creativity, organization, and humility.

Question 11

The owner of store that specializes in birds ordered $200 of Tropican food from Hagen Avicultural Research Institute. On the invoice dated October 18 that Hagen sent to the store owner was written, "3/10, EOM." If the store owner pays the bill in full on November 2, what amount will she have to pay?
A)$147.00
B)$189.00
C)$191.00
D)$200.00
E)$183.00

Accepted Answer

The term "3/10, EOM" means that the store owner can take a 3% discount if the bill is paid within 10 days of the invoice date, or pay the full amount by the end of the month (EOM) and not receive a discount.

If the store owner pays the bill by October 28 (10 days after October 18), she can take a 3% discount:
$200 x 0.03 = $6 discount
$200 - $6 = $194

However, since the store owner paid the bill in full on November 2 (after the discount period), she will have to pay the full amount of $200. Therefore, the best choice is C.

Question 12

The owner of Molly's Gift Shop ordered a brass sculpture from The Brass Baron, a distributor of garden whimsy, for $200. The invoice she received from The Brass Baron read, "2/15, n/30," and arrived on March 1. How much will she have to pay if she pays the invoice by March 11?
A)$196
B)$200
C)$190
D)$100
E)$150

Accepted Answer

The invoice terms "2/15, n/30" mean a 2% discount is available if paid within 15 days. Paying by March 11 is within 15 days of March 1, so the discount applies: $200 - 2% of $200 = $200 - $4 = $196.

Question 13

The owner of Molly's Gift Shop ordered a brass sculpture from The Brass Baron, a distributor of garden whimsy, for $225. The invoice she received from The Brass Baron read, "2/15, n/30," and arrived on March 19. How much will she have to pay if she pays the invoice by April 10?
A)$195
B)$220.50
C)$225
D)$229.50
E)$247.50

Accepted Answer

The answer of The owner of Molly's Gift Shop ordered...

Question 14

Part of being honest as a salesperson is being willing to show the disappointment you feel if a prospect does not commit to do business with you.

Accepted Answer

This statement is false. While it is important to be honest with prospects, showing disappointment or being overly pushy can actually turn them off from doing business with you in the future. It's better to maintain a respectful, professional demeanor and continue to follow up with the prospect in a friendly and helpful manner.

Question 15

Which of the following statements about closing techniques is true?
A)When a major sale is at stake, closing techniques increase the salesperson's odds of success.
B)Salespeople specifically trained in closing techniques close more sales.
C)The most important activity of the salesperson is to answer objections to clear the way to use a closing technique.
D)Closing techniques are especially handy in door-to-door sales of low-priced products.
E)The best closing methods rely on some type of trickery.

Accepted Answer

Closing techniques are particularly useful in door-to-door sales of low-priced products because these sales often require quick decisions and the techniques can help prompt immediate action from the customer.

Question 16

The owner of Scott's Hardware will receive a discount of 15 percent if she orders 12 or more Mandarin bird feeders from Arundale Products. If fewer than 12 bird feeders are ordered, she will not receive the _____ discount.
A)functional
B)trade
C)quantity
D)promotional
E)cash

Accepted Answer

The discount mentioned in the scenario is based on the quantity of Mandarin bird feeders that the owner of Scott's Hardware will order. Therefore, the appropriate type of discount is a quantity discount. The other options (functional, trade, promotional, cash) do not apply to this scenario.

Question 17

If Perkinston's Pet Store, a retailer of tropical fish and supplies, buys one 200-gallon fish tank from La Mer Aquarium Products, it will be billed $329. If it buys more than six during the upcoming year, it will get a 20 percent discount on each aquarium. This savings is referred to as a:
A)cumulative quantity discount.
B)promotional allowance.
C)trade discount.
D)functional discount.
E)cash discount.

Accepted Answer

The savings offered by La Mer Aquarium Products is a cumulative quantity discount, which is a type of discount offered based on the quantity purchased over a certain period of time. This is different from a trade discount, which is a discount given to customers in a specific trade or industry, or a functional discount, which is a discount given for certain functions such as prompt payment or bulk purchases. A promotional allowance is a discount given for promotional purposes, while a cash discount is a discount given for prompt payment.

Question 18

David has done his job well, presenting the product, showing how it meets the needs of his customer, and handling all questions and objections. David:
A)needs to pressure the customer into making the commitment.
B)should relax and let nature take its course.
C)deserves the sale.
D)ask the buyer to do him a favor and buy his product.
E)should do or expect all of the above.

Accepted Answer

David has done his job well, so he deserves the sale.

Question 19

The decision to buy or not to buy should not focus on a signature.

Accepted Answer

The decision to make a purchase should be based on various factors such as product quality, necessity, price, and personal preferences, and not just on the mere presence of a signature.

Question 20

Closing is defined as:
A)a close harmonious relationship founded on mutual trust.
B)a specific statement by a seller outlining what the seller will provide and what is expected from the buyer.
C)a written proposal summarizing key points of a previous meeting.
D)asking a question to take the pulse of the situation.
E)asking for the buyer's business.

Accepted Answer

Closing refers to the final step in a sales process where the seller asks for the buyer's business or commitment to purchase. Option E correctly defines closing as asking for the buyer's business. The other options (A, B, C, and D) are incorrect definitions of closing.

Quiz 11: Obtaining Commitment

The terms and conditions of sale include shipping costs. The seller quotes an FOB price. The letters FOB stand for:

A salesperson must uncover the reasons he or she was unable to obtain commitment.

Which of the following is an example of a salesperson who has obtained commitment?

Kendra is the new owner of a catering company. She got an invoice for a new walk-in refrigerator in the mail which contained the phrase "2/10, n/30." How would you explain this to her?

Most sales take only one call to complete.

Why is it important for salespeople to become skilled in obtaining prospect commitment?

If Lewis appears overly eager or excited when he senses his prospects are about to commit, they may interpret his actions as nonverbal cues indicating he is dishonest.

When closing a sale, there should be no surprises for the buyer.

In the opening profile Todd Pollock describes successful inside salespeople as having all of the following qualities EXCEPT:

The owner of Molly's Gift Shop ordered a brass sculpture from The Brass Baron, a distributor of garden whimsy, for $200. The invoice she received from The Brass Baron read, "2/15, n/30," and arrived on March 1. How much will she have to pay if she pays the invoice by March 11?

The owner of Molly's Gift Shop ordered a brass sculpture from The Brass Baron, a distributor of garden whimsy, for $225. The invoice she received from The Brass Baron read, "2/15, n/30," and arrived on March 19. How much will she have to pay if she pays the invoice by April 10?

Part of being honest as a salesperson is being willing to show the disappointment you feel if a prospect does not commit to do business with you.

Which of the following statements about closing techniques is true?

The owner of Scott's Hardware will receive a discount of 15 percent if she orders 12 or more Mandarin bird feeders from Arundale Products. If fewer than 12 bird feeders are ordered, she will not receive the _____ discount.

If Perkinston's Pet Store, a retailer of tropical fish and supplies, buys one 200-gallon fish tank from La Mer Aquarium Products, it will be billed $329. If it buys more than six during the upcoming year, it will get a 20 percent discount on each aquarium. This savings is referred to as a:

David has done his job well, presenting the product, showing how it meets the needs of his customer, and handling all questions and objections. David:

The decision to buy or not to buy should not focus on a signature.

Closing is defined as: