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web.groovymark@gmail.com
- December 8, 2024
Question 21
What is a key advantage of using the “Incremental Method” for determining the size of a sales force?
a) It guarantees an increase in sales
b) It adds sales representatives only if the additional revenue they generate exceeds costs
c) It increases the number of sales territories
d) It sets arbitrary quotas for each sales representative
Answer: b) It adds sales representatives only if the additional revenue they generate exceeds costs
Explanation: The incremental method optimizes the size of the sales force by adding new sales reps only when they are expected to generate more revenue than they cost.
Question 22
Which of the following describes a “Preferred Supplier”?
a) A supplier that provides products on credit
b) A supplier with a formal agreement to supply a company with goods or services under favorable terms
c) A supplier that offers the lowest price in the market
d) A supplier chosen for one-time transactions only
Answer: b) A supplier with a formal agreement to supply a company with goods or services under favorable terms
Explanation: A preferred supplier is a company that enters into a formal agreement to provide goods or services with specific terms and conditions favorable to both parties.
Question 23
What does the “R” stand for in a RACI matrix?
a) Responsible
b) Required
c) Resourceful
d) Reactive
Answer: a) Responsible
Explanation: In a RACI matrix, “R” stands for Responsible, indicating the person(s) directly responsible for completing the task or objective.
Question 24
Which of the following is a type of incentive that directly relates to the profitability of the company?
a) Sales quota
b) Fringe benefits
c) Profit-sharing
d) Commission
Answer: c) Profit-sharing
Explanation: Profit-sharing is a financial incentive where employees receive bonuses based on the company’s profitability, aligning their interests with the company’s success.
Question 25
What does the “360-degree feedback” process involve?
a) A review by an employee’s direct manager only
b) Collecting performance reviews from a variety of sources, including peers, supervisors, and subordinates
c) Conducting interviews with customers about their experience
d) Using only customer surveys to evaluate performance
Answer: b) Collecting performance reviews from a variety of sources, including peers, supervisors, and subordinates
Explanation: 360-degree feedback involves gathering input from multiple sources to provide a well-rounded evaluation of an employee’s performance.
Question 26
In the RACI matrix, what does the letter “A” represent?
a) Acknowledged
b) Accountable
c) Analyzed
d) Accredited
Answer: b) Accountable
Explanation: “A” stands for Accountable in the RACI matrix, meaning the person who is ultimately answerable for the completion of the task and responsible for approving the outcome.
Question 27
What type of purchasing involves buying the same product repeatedly under the same terms?
a) New task purchase
b) Straight rebuy
c) Modified rebuy
d) Supplier selection
Answer: b) Straight rebuy
Explanation: A straight rebuy occurs when a business purchases the same product from the same supplier under identical terms as a previous order.
Question 28
What is “Lead Conversion Rate”?
a) The percentage of leads that are converted to customers
b) The amount of revenue generated from each lead
c) The number of products sold per lead
d) The time it takes to close a sale
Answer: a) The percentage of leads that are converted to customers
Explanation: Lead conversion rate is a metric that measures the percentage of leads that result in actual sales, indicating the effectiveness of the sales process.
Question 29
Which term refers to products that complement a customer’s purchase?
a) Substitute products
b) Competitive products
c) Cross-sell products
d) Accessory products
Answer: c) Cross-sell products
Explanation: Cross-sell products are complementary items that are offered alongside a customer’s primary purchase, increasing the value of the transaction.
Question 30
What is a “Win-Loss Analysis”?
a) An assessment of why certain sales deals were won or lost
b) A method for forecasting future sales performance
c) A report that compares sales quotas to actual performance
d) A review of customer satisfaction
Answer: a) An assessment of why certain sales deals were won or lost
Explanation: Win-loss analysis is a review of successful and unsuccessful sales deals, helping businesses understand factors that contribute to both wins and losses.
Question 31
Which metric measures how quickly a salesperson responds to an identified lead?
a) Lead response time
b) Sales quota
c) Average purchase value
d) Sales funnel conversion rate
Answer: a) Lead response time
Explanation: Lead response time tracks how quickly sales representatives engage with potential customers once a lead is identified, which can impact the likelihood of closing a sale.
Question 32
Which purchasing strategy is associated with lowering inventory costs by receiving materials only when needed?
a) Just-in-Time (JIT) inventory management
b) Bulk purchasing
c) Straight rebuy
d) Continuous replenishment
Answer: a) Just-in-Time (JIT) inventory management
Explanation: JIT inventory management minimizes inventory costs by receiving materials only when they are required for production, reducing the need for excess stock.
Question 33
Which of the following best defines a “Sales Force Composite”?
a) A tool for determining product market potential
b) A forecast based on individual sales representatives’ predictions
c) A customer feedback method
d) A performance appraisal technique
Answer: b) A forecast based on individual sales representatives' predictions
Explanation: A sales force composite involves gathering sales forecasts from each salesperson or territory, combining them to create an overall sales forecast.
Question 34
What is the purpose of “Sealed Bids” in government contracts?
a) To ensure transparency and fairness in the bidding process
b) To award contracts to the lowest bidder only
c) To prevent competitors from entering the market
d) To provide flexibility in government procurement
Answer: a) To ensure transparency and fairness in the bidding process
Explanation: Sealed bids are used in government contracts to promote fairness and transparency by allowing companies to submit bids without knowledge of their competitors' offers.
Question 35
Which of the following refers to the ability of a customer to switch suppliers or negotiate better terms?
a) Customer loyalty
b) Bargaining power
c) Straight rebuy
d) Supplier preference
Answer: b) Bargaining power
Explanation: Bargaining power refers to the influence customers have when negotiating prices or terms with suppliers, often determined by the availability of alternative options.
Question 36
What type of customer is described as generating high revenue but requiring the most resources to serve?
a) Passive customers
b) Carriage trade customers
c) Bargain basement customers
d) Aggressive customers
Answer: b) Carriage trade customers
Explanation: Carriage trade customers generate significant revenue but also demand extensive resources and attention from the business.
Question 37
Which of the following describes a “Pareto Principle”?
a) 80% of the effects come from 20% of the causes
b) Sales representatives should spend 20% of their time prospecting
c) 80% of revenue comes from 20% of customers
d) Sales managers should allocate 80% of their resources to key accounts
Answer: a) 80% of the effects come from 20% of the causes
Explanation: The Pareto Principle, or 80/20 rule, states that a small number of causes (20%) often lead to the majority of effects (80%), commonly used in sales and business management.
Question 38
Which type of customer generates low revenue but requires fewer resources to serve?
a) Carriage trade customers
b) Aggressive customers
c) Bargain basement customers
d) Passive customers
Answer: c) Bargain basement customers
Explanation: Bargain basement customers generate lower revenue but are easier to serve, requiring fewer resources and less attention.
Question 39
What is the primary goal of a “Strategic Partnership” in business?
a) To increase short-term revenue
b) To achieve long-term growth for both parties
c) To reduce the cost of goods sold
d) To decrease employee turnover
Answer: b) To achieve long-term growth for both parties
Explanation: Strategic partnerships involve businesses committing resources to foster mutual growth and create long-term value for both parties involved.
Question 40
Which type of quota is used to measure the performance of supervisors or managers?
a) Direct quotas
b) Sales quotas
c) Overlay quotas
d) Performance quotas
Answer: c) Overlay quotas
Explanation: Overlay quotas are assigned to those in supervisory or management positions who are not directly responsible for closing sales but oversee sales teams.
