Question 1  A manufacturer has 20 sales representatives using their own cars to cover territories of various sizes in the eastern half of the United States. To reimburse these people for the use of their cars, the plan most equitable to both management and the sales force is a:

a)payment of actual expenses as reported by the sales reps.

b)flat rate per mile.

c)fixed allowance per month.

d)flexible allowance such as the Runzheimer plan.

Question 2  The best method for a manager to use when dealing with a situation of substance abuse with a sales rep is:

a)immediate termination of the sales rep.

b)ignore the situation and it will resolve itself.

c)provide counseling to the sales rep yourself.

d)refer the sales rep to professional counseling.

Question 3  When a leader anticipates, analyzes, and makes decisions, the leader uses________________.

a)problem-solving skills

b)social skills

c)communication skills

d)persuasive skills

Question 4  As more salespeople use virtual offices supervisors will:

a)spend more time in the field with their reps.

b)spend less time in the field with their reps.

c)work at home most of the day.

d)have less access to information.

Question 5  For which of these sales jobs will management most likely use an activity quota?

a)wholesale hardware sales rep

b)life insurance sales rep

c)missionary sales rep for a soap manufacturer calling on grocery stores

d)wholesaler's salespeople selling office supplies

Question 6  A drawback to basing sales quotas on last year's sales is that this method:

a)places too much emphasis on territorial sales potential.

b)generally ignores current changes in a territory's sales potential.

c)is a complex system to administer.

d)ignores the fact that an older sales rep has covered the territory or is still there.

Question 7  A major criticism against sales quotas is that:

a)it is very difficult to set quotas accurately .

b)quotas are not fair to the sales force.

c)quotas cannot stimulate sales of profitable products.

d)quotas are not realistically attainable.

Question 8  Indirect supervisory techniques include all of the following, except________________.

a)sales meetings

b)territories

c)quotas

d)expense accounts

Question 9  A company is likely to use a sales volume quota when management wants:

a)a balanced sales effort between selling and non-selling activities.

b)a salesperson to develop a new market.

c)to increase its gross margin.

d)to correct an unbalanced inventory situation by pushing sales of one item.

Question 10 A well-designed plan for paying salespeople's expenses should:

a)pay the same amount to each sales rep.

b)allow a rep to earn the same net income whether on a business trip or at home after work each day.

c)allow for a little padding of expense accounts.

d)be used, to some extent, in lieu of compensation, thus providing some nontaxable income to a sales representative.