Question 1

Another name for a salary-plus-commission plan is the:
A) compound plan
B) time and results plan
C) guaranteed draw plus bonus
D) combination plan
E) joint payment plan

Accepted Answer

The answer of Another name for a salary-plus-commission plan is...

Question 2

To keep salaries paid to salespeople from becoming so high that they become demoralizing to company executives, some companies place upper limits on how much a sales rep can earn. This limit is called a:
A) buttress
B) foundation
C) base
D) cap
E) ground rule

Accepted Answer

The limit placed on how much a sales rep can earn is commonly referred to as a "cap." This ensures that salespeople are motivated to perform well and reach their goals, but also prevents their earnings from exceeding a certain point that might create imbalances or resentment among other employees, particularly executives who may feel that their salaries are not as high in comparison.

Question 3

Candace was distressed to discover her company had paid several bribes to get a major contract. When she voiced her concerns to management, she was told to keep her mouth shut if she wanted to keep her job. After several other attempts to get the unethical practices stopped, Candace gave the evidence she had of the corporation paying bribes to a local television station. Candace is a:
A) whispering willow
B) barrister
C) whistle blower
D) mouthpiece
E) chatterbox

Accepted Answer

Candace is a whistle blower because she reported the unethical practices of her company to the media.

Question 4

Which of the following statements about sales training is true?
A) Most experienced salespeople train others rather than need any training themselves
B) Most sales managers plan their sales training sessions for experienced sales reps using the model training guide published yearly in the August issue of Sales and Marketing Management.
C) Experienced salespeople find it easy to adapt new techniques they learn in training sessions.
D) A field sales manager is rarely assigned to train a new salesperson.
E) Experienced salespeople often view training sessions as wasting time they could be in the field selling.

Accepted Answer

Experienced salespeople often view training sessions as wasting time they could be in the field selling. Option A, B, C and D are incorrect because they do not reflect the reality of sales training. Salespeople at any level need training to continuously improve their skills and adapt to changing market conditions. Experienced salespeople may require different types of training from new sales reps, but training is still necessary for their professional growth.

Question 5

_____ are general management techniques that allow subordinates to bypass immediate managers and take concerns to upper management when the subordinates perceive a lack of support from their immediate manager.
A) Line of command detours
B) Open-door policies
C) Circumvention strategies
D) Supervisory detours
E) Organizational review boards

Accepted Answer

Open-door policies provide a way for subordinates to bypass their immediate manager and take their concerns to upper management when needed. The other choices either do not exist or do not accurately describe this management technique.

Question 6

Neal works for Integrated Computer Systems Distributors (ICSD) as a field salesperson. In his territory, he only calls on attorney's offices and physician's offices. This specialization has allowed him to develop a high level of expertise at selecting just the right combination of hardware and software to meet the unique needs of these offices. From this information, it sounds like Neal is part of a sales force that is organized according to:
A) account types
B) sales volume
C) geographic regions
D) customer ethics
E) performance based criteria

Accepted Answer

Neal is specialized in calling on attorney's offices and physician's offices, which are specific types of accounts. Therefore, the sales force is organized according to account types.

Question 7

Roger was distressed when he learned the company he was working for was making unethical use of competitive intelligence it had gained by bribing a competitor's employee. Then Roger was told to use the information in his sales presentation. What can Roger do?
A) Agree to the demand but fail to carry it out.
B) Quit his job and find another.
C) Threaten to blow the whistle to the competitor.
D) Refuse to comply with the request.
E) Do any of the above.

Accepted Answer

Roger has multiple options: he can agree but not follow through, quit his job, threaten to expose the unethical behavior, or outright refuse to comply. Each choice has different consequences and ethical considerations.

Question 8

A _____ resembles a commission, but the amount paid depends on total performance, not each individual sale.
A) bonus
B) draw
C) markup
D) salary
E) combination plan

Accepted Answer

The answer of A _____ resembles a commission, but the...

Question 9

Management uses a combination plan when it wants to:
A) motivate salespeople to increase revenues while continuing to perform nonselling activities
B) emphasize that its sales force needs to concentrate on getting new and commissionable sales
C) make sure the sales force can easily understand exactly how it is being financially rewarded
D) engage in transactional selling relationships
E) accomplish all of the above

Accepted Answer

The answer of Management uses a combination plan when it...

Question 10

Which of the following is an appropriate strategy to use when the sales manager asks you (the salesperson) to slip a purchasing agent a couple of hundred dollars in order to get him to put in a good word with the buying center for your company's new line of packaging equipment?
A) Ignore the request.
B) Appeal to a higher authority.
C) Threaten to blow the whistle.
D) Leave the organization.
E) All of the above are appropriate strategies to use when handling unethical requests from managers.

Accepted Answer

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

Question 11

When Wallace earned a commission that was greater than the salary of his company's senior vice-president, he was pleased with his accomplishments. He was not so happy when the company told him that it had a _____ and that he would receive only $50,000 in commissions--about 40 percent less than he had earned.
A) buttress
B) foundation
C) base
D) cap
E) ground rule

Accepted Answer

The word "cap" means a limit or maximum amount. In this context, the company told Wallace that there was a limit to how much commission he could earn, and it was $50,000, which was less than what he had earned previously. Therefore, option D is the best choice. The other options, such as "buttress," "foundation," "base," and "ground rule," do not make sense in this context.

Question 12

What is the easiest method to evaluate the performance of salespeople?
A) measure customer service levels
B) measure product knowledge
C) measure total sales
D) determine how quickly management requests for information are answered
E) measure how aware each stays of current relevant information about competition and business conditions

Accepted Answer

Measuring total sales is the easiest and most straightforward method to evaluate the performance of salespeople. It provides a clear metric to determine the effectiveness of each salesperson and compares their performance to that of others on the team.

Question 13

Drew believes his sales manager has instructed him to do something unethical, and after discussing the practice with the manager, the instructions still stand. Drew's company encourages him to take his concerns to upper management because it has a(n) _____ policy.
A) no-holds-barred
B) bottom-up
C) open-air
D) bare bones
E) open-door

Accepted Answer

An "open-door policy" means that employees are encouraged to bring any concerns or complaints to upper management without fear of retaliation. This is the best fit for the situation described in the question.

Question 14

Salespeople have the right to expect fair treatment from their company. In which area do salespeople believe they are most likely to not be treated fairly by their company?
A) territory allocation
B) promotion policies
C) quota assignments
D) compensation
E) recruitment policies

Accepted Answer

Salespeople often feel as though they are not fairly compensated for their efforts, particularly if their compensation is heavily based on commission or performance-based bonuses.

Question 15

The major advantage of the straight commission compensation approach is it:
A) provides reduced incentive
B) ties compensation directly to performance
C) encourages cooperation in preparing sales forecasts
D) promotes company loyalty
E) all of the above

Accepted Answer

The major advantage of the straight commission compensation approach is tying compensation directly to performance, which can increase motivation and productivity. The other options are not advantages of this approach.

Question 16

NevaFlat Tire Company has divided the state of Tennessee into three territories--east, middle, and west. Salespeople are based in Knoxville, Nashville and Memphis to work these three territories. Based on this information, you can say with certainty these salespeople are:
A) inside salespeople
B) paid a straight commission
C) paid a straight salary
D) geographic salespeople
E) product specialists

Accepted Answer

The salespeople are divided based on geographic territories, meaning they are geographic salespeople.

Question 17

A group of experts from inside and outside the firm is employed by the Lion Ribbon Company to investigate allegations of improper behavior and act as a sounding board for employees. The term for a group like this is:
A) reconsideration panel
B) ethics review board
C) evaluation board
D) incentive panel
E) summary judgment panel

Accepted Answer

The term for a group employed to investigate allegations of improper behavior and act as a sounding board for employees is an ethics review board. This group is composed of experts from inside and outside the firm who can provide objective guidance and advice on ethical matters.

Question 18

Which of the following describes the major disadvantage associated with a combination compensation plan?
A) its inability to be used as a motivation tool
B) its complexity
C) it encourages building long-term relationships with customers
D) it encourages customer service
E) the way it gives the company more control over its sales force

Accepted Answer

The major disadvantage associated with a combination compensation plan is its complexity, as it involves combining different types of compensation such as salary, commissions, and bonuses, which can be difficult to calculate and administer.

Question 19

When ordered to sell inferior training software to the U.S. government, an ethical salesperson should:
A) do as his supervisor instructs him
B) rationalize away the behavior by placing responsibility on the manager who gave the order
C) try to fix the problem himself/herself
D) refuse to comply with the request
E) do all or any of the above because he or she is an ethical salesperson

Accepted Answer

An ethical salesperson should refuse to comply with the request to sell inferior training software to the U.S. government. Selling inferior products is not only unethical, but it can also lead to serious consequences for the government and potentially harm individuals. A salesperson should prioritize their ethical responsibilities and not compromise them for the sake of their job.

Question 20

An ethics review board:
A) is a completely internal tool for auditing ethical behavior within an organization
B) typically has no real effect on the ethics of an organization
C) should not be expected to have any lasting effect on behavioral norms within the company
D) can investigate allegations of unethical behavior and serve as a sounding board for employees
E) should be composed solely of outside experts who are in no way financially involved with the organization

Accepted Answer

An ethics review board can investigate allegations of unethical behavior and serve as a sounding board for employees. This means that it can have a lasting effect on behavioral norms within the company. However, it may not have a real effect if it is not taken seriously by the organization. The composition of the board can vary but it is recommended to have a mix of inside and outside experts. Financial involvement may create a conflict of interest.

Quiz 16: Managing Within Your Company

Another name for a salary-plus-commission plan is the:

To keep salaries paid to salespeople from becoming so high that they become demoralizing to company executives, some companies place upper limits on how much a sales rep can earn. This limit is called a:

Which of the following statements about sales training is true?

_____ are general management techniques that allow subordinates to bypass immediate managers and take concerns to upper management when the subordinates perceive a lack of support from their immediate manager.

Roger was distressed when he learned the company he was working for was making unethical use of competitive intelligence it had gained by bribing a competitor's employee. Then Roger was told to use the information in his sales presentation. What can Roger do?

A _____ resembles a commission, but the amount paid depends on total performance, not each individual sale.

Management uses a combination plan when it wants to:

Which of the following is an appropriate strategy to use when the sales manager asks you (the salesperson) to slip a purchasing agent a couple of hundred dollars in order to get him to put in a good word with the buying center for your company's new line of packaging equipment?

What is the easiest method to evaluate the performance of salespeople?

Drew believes his sales manager has instructed him to do something unethical, and after discussing the practice with the manager, the instructions still stand. Drew's company encourages him to take his concerns to upper management because it has a(n) _____ policy.

Salespeople have the right to expect fair treatment from their company. In which area do salespeople believe they are most likely to not be treated fairly by their company?

The major advantage of the straight commission compensation approach is it:

NevaFlat Tire Company has divided the state of Tennessee into three territories--east, middle, and west. Salespeople are based in Knoxville, Nashville and Memphis to work these three territories. Based on this information, you can say with certainty these salespeople are:

A group of experts from inside and outside the firm is employed by the Lion Ribbon Company to investigate allegations of improper behavior and act as a sounding board for employees. The term for a group like this is:

Which of the following describes the major disadvantage associated with a combination compensation plan?

When ordered to sell inferior training software to the U.S. government, an ethical salesperson should:

An ethics review board: