Question 1

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?

Accepted Answer

Salespeople often feel that their compensation is not fair or competitive enough. This could be due to unclear commission structures, lack of bonuses, or insufficient base salaries.

Question 2

Management uses a combination plan when it wants to:

Accepted Answer

A combination plan is used to motivate salespeople to increase revenues while also performing nonselling activities by providing a mix of salary and commission.

Question 3

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.

Accepted Answer

An open-door policy means that employees are encouraged to bring any concerns or grievances to upper management without fear of retribution. This is the best answer as it closely aligns with the scenario presented. A no-holds-barred policy suggests a lack of boundaries or limitations, a bottom-up policy refers to decision-making starting at the lower levels of an organization, an open-air policy is not a commonly used phrase in management, and a bare bones policy suggests a minimal or basic approach to addressing employee concerns.

Question 4

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(n):

Accepted Answer

An ethics review board is a group of experts from inside and outside the firm that is employed to investigate allegations of improper behavior and act as a sounding board for employees.

Question 5

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.

Accepted Answer

The word "cap" fits the context as it implies a limit or maximum, indicating that Wallace's commission was limited to $50,000 despite earning more.

Question 6

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

Accepted Answer

A truly ethical salesperson should prioritize doing what is morally right over doing what is requested by their supervisor. Refusing to comply with the request would demonstrate integrity and a commitment to ethical behavior. The other options, such as rationalizing or trying to fix the problem, do not address the root issue of selling inferior software and may compromise the salesperson's ethical standards.

Question 7

An ethics review board:

Accepted Answer

An ethics review board is typically established to investigate allegations of unethical behavior and to serve as a sounding board for employees. It can have a significant effect on the ethics of an organization by actively monitoring and enforcing ethical behavior. However, it is important that the members of the board do not have any conflicts of interest or potential financial ties to the organization being reviewed.

Question 8

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

Accepted Answer

The major advantage of the straight commission compensation approach is that it ties compensation directly to performance. This provides salespeople with a strong incentive to increase sales and revenue, which can benefit the company as a whole. The other options listed are not advantages of the straight commission compensation approach.

Question 9

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?

Accepted Answer

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

Question 10

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?

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 implications and consequences.

Question 11

_____ 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.

Accepted Answer

Open-door policies allow subordinates to raise concerns with upper management if they feel their immediate manager is not providing adequate support. This can improve communication and problem-solving within the organization. Choice A (line of command detours), C (circumvention strategies), D (supervisory detours), and E (organizational review boards) are not commonly used management techniques and do not accurately describe the concept of bypassing immediate managers.

Question 12

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

Accepted Answer

The major disadvantage of a combination compensation plan is its complexity. It can be difficult to design and administer a plan that effectively balances multiple compensation components. The plan may also be confusing for sales representatives, which can reduce their motivation and productivity.

Question 13

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:

Accepted Answer

Candace is a "whistle blower" because she reported the company's unethical practices by providing evidence to a local television station. A "whispering willow" is a person who spreads rumors or gossip in a secretive or subtle manner, a "barrister" is a type of lawyer, a "mouthpiece" is someone who speaks on behalf of others or an organization, and an "chatterbox" is someone who talks excessively.

Question 14

Which of the following statements about sales training is true?

Accepted Answer

Experienced salespeople often view training sessions as wasting time they could be in the field selling. The other statements are either incorrect or do not have a clear basis in fact.

Question 15

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

Accepted Answer

A bonus is a payment made to an employee in addition to their regular salary, typically based on performance.

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:

Accepted Answer

The fact that the state of Tennessee is divided into three territories and salespeople are assigned to specific regions indicates that they are geographic salespeople.

Question 17

Ed works for Lanier Business Products as a straight commission sales representative. In weeks when his earned commission is less than $600, the company loans him enough money against future commissions to allow him to receive $600. In future weeks, when Ed earns more than $600, the extra is applied to repaying the loan. For Ed a guaranteed $600 is his:

Accepted Answer

This situation describes a draw, which is an advance payment against future earnings. In weeks when Ed's commissions are less than $600, he receives a loan (draw) from the company to reach the guaranteed minimum of $600. When he earns more than $600 in future weeks, the extra is used to repay the loan. This arrangement helps to provide Ed with a consistent income even if his commission earnings fluctuate.

Question 18

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

Accepted Answer

A salary-plus-commission plan is often referred to as a combination plan because it combines a fixed salary with variable commission based on performance.

Question 19

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:

Accepted Answer

The limit placed on how much a sales rep can earn is called a "cap." This term specifically refers to a limit on earnings, and is the best choice among the options given.

Question 20

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

Accepted Answer

Total sales is the easiest and most straightforward method to evaluate the performance of salespeople. It directly reflects how much revenue they are generating for the company. However, it should be noted that this method alone does not necessarily indicate the quality of the salesperson's customer service or product knowledge. Other methods mentioned could be used in conjunction with measuring total sales for a more comprehensive evaluation.

Quiz 16: Managing Within Your Company