Question 1

Ben, a computer systems salesperson, is compensated by his firm with a drawing account plan. At the beginning of each month, Ben receives $1,000. This month, Ben's sales resulted in commissions of $2,500. What will most likely occur as a result?

Accepted Answer

The drawing account combines the incentive of a commission plan with the security of a fixed income. Ben draws $1,000 each month against his commissions for the month. Because his commissions were $2,500, the firm owes him an additional $1,500.

Question 2

Phil, an inexperienced salesperson, is nervous about his ability to close a sale. What type of leadership style would be most appropriate for Phil's supervisor to use?

Accepted Answer

A telling leadership style is characterized by above-average levels of task behavior and below-average levels of relationship behavior. The telling style is appropriate to use when a new salesperson is unsure of how to perform a task, such as closing a sale.

Question 3

Which of the following statements about a commission plan is most likely true?

Accepted Answer

A commission plan typically ties the compensation of salespeople directly to their sales performance. As a result, selling costs are often kept in proportion to sales, as opposed to a straight salary plan where costs may not adjust to reflect changes in sales volume. The other statements are not necessarily true of a commission plan.

Question 4

_____ involves the extent to which a leader listens, provides clarification, and gives positive feedback.

Accepted Answer

Relationship behavior refers to a leader's focus on building interpersonal relationships with their followers. This includes active listening, providing clarification, and offering positive feedback to foster a supportive and cooperative work environment.

Question 5

Performance bonuses are typically categorized by either:

Accepted Answer

Performance bonuses are typically categorized as either individual rewards or group rewards. Individual rewards are based on the performance of an individual employee, while group rewards are given to a team or department for meeting certain goals or objectives.

Question 6

Under a _____ plan, a proportion of the salesperson's total pay is guaranteed while some of it can come from commissions.

Accepted Answer

In a combination salary plan, a portion of the salesperson's pay is guaranteed and the rest comes in the form of commissions. This provides a balance between a secure income and the motivation to sell more and earn higher commissions. A straight salary plan guarantees a fixed salary regardless of sales performance, while a straight commission plan pays only for sales made and does not provide any guaranteed income. A drawing account is a type of advance on future commissions rather than a plan for how the salesperson is paid. An operational incentive plan provides bonuses based on achieving certain performance targets, but may not include any guaranteed income.

Question 7

Morgan-Hunt Agency, a financial investment company, pays $300 to each of its salespersons as a year-end bonus, regardless of productivity. This is an example of a(n):

Accepted Answer

This is an example of an across-the-board bonus, as every salesperson receives the same amount regardless of their individual productivity.

Question 8

Beth, an experienced salesperson, has recently been given a key account. Beth is motivated to perform a good job but is having trouble effectively carrying out her responsibilities. Beth is having a meeting with her sales manager to address the issue. Which leadership style should Beth's manager most likely use?

Accepted Answer

A persuading leadership style, characterized by above-average amounts of both task and relationship behavior, would be best in this situation. Beth's sales manager should make decisions but gain Beth's cooperation by explaining what needs to be done and persuading Beth to carry out the decision.

Question 9

Which of the following leadership styles is characterized by high task behavior and low relationship behavior?

Accepted Answer

The leadership style characterized by high task behavior and low relationship behavior is known as "telling." This style involves giving specific instructions and closely supervising subordinates to ensure that they complete their tasks correctly. It doesn't involve building strong relationships with team members or focusing on their needs and preferences.

Question 10

A sales manager who uses the persuading leadership style most likely:

Accepted Answer

A persuading leadership style is characterized by above-average amounts of both task and relationship behavior. The sales manager makes the decision; however, the salesperson's cooperation is sought by explaining what needs to be done and then persuading the salesperson to carry out the decision.

Question 11

Rachel, an experienced sales representative, was told by her sales manager how to develop a sales presentation. Rachel's manager is most likely following a _____ leadership style.

Accepted Answer

A "telling" leadership style involves giving clear instructions and specific directions to employees without seeking their input or feedback. In this scenario, Rachel's manager is telling her how to develop a sales presentation, indicating that they are likely following a telling leadership style.

Question 12

All of the following are relationship behaviors EXCEPT:

Accepted Answer

Providing organizational responsibilities is not a relationship behavior, but rather a task or duty assigned within an organization. The other choices involve interpersonal communication and support between individuals.

Question 13

Your new boss gives very detailed instructions and closely watches your progress. This shows your boss's:

Accepted Answer

The boss giving detailed instructions and closely monitoring progress is an example of task behavior, which focuses on the specific activities needed to accomplish a task or goal. This type of leadership style is useful in situations where employees may be new to a task or need clear guidance to ensure successful completion.

Question 14

Which term refers to special sales programs offering salespeople incentives to achieve short-term sales goals?

Accepted Answer

Sales contests are special sales programs in which salespeople are offered incentives to achieve short-term sales goals. These incentives can be in the form of cash, trips, or prizes. The main purpose of sales contests is to motivate salespeople to increase their sales performance and achieve specific targets within a specific time frame.

Question 15

Which of the following is an advantage of the straight commission plan?

Accepted Answer

The straight commission plan provides maximum incentive and the opportunity to earn top money, as the salespeople are paid a percentage of their sales. Therefore, the harder they work, the more they earn.

Question 16

Which leadership style is characterized by low task behavior and high relationship behavior?

Accepted Answer

The participating leadership style is characterized by low task behavior and high relationship behavior. In this style, the leader involves subordinates in the decision-making process and encourages participation to build a positive and supportive environment. The leader may work alongside the team and collaborate to achieve goals, which requires a high level of relationship behavior.

Question 17

_____ is a process by which the sales manager uses both task and relationship behaviors to influence the activities of salespeople.

Accepted Answer

The process described in the question is leadership. Leadership involves the use of both task-oriented and relationship-oriented behaviors to guide and motivate team members to achieve their goals. In a sales context, sales managers use leadership to influence the activities of salespeople and achieve organizational objectives.

Question 18

A manager characterized by a high level of task behavior:

Accepted Answer

A manager with a high level of task behavior closely supervises the individual or group to ensure that the job is done. This involves monitoring performance, providing direction, and taking corrective action when necessary to achieve the desired results. Task behavior is typically associated with autocratic or directive leadership styles, where the leader emphasizes structure, control, and adherence to rules and procedures.

Question 19

Which of the following is a disadvantage of straight commission plans?

Accepted Answer

Under the straight commission plan, salespeople are much more reluctant to split territories or move from their present territory to another territory. They may have spent time building a rapport with their customers and do not want to relinquish it.

Question 20

What two components should determine the best leadership style to use?

Accepted Answer

A sales manager should choose a leadership style based on the salesperson and the situation.

Quiz 17: Motivation, Compensation, Leadership, and Evaluation of Salespeople