During the Process of Account Classification, It Is Not Uncommon

question 91

Multiple Choice

During the process of account classification, it is not uncommon for salespeople to find ________?

• A) 60 percent of their customers generate 30 percent of their sales potential.
• B) 20 percent of their customers generate 80 percent of their sale potential.
• C) 50 percent of their customers are high volume customers and 50 percent are low volume customers.
• D) most accounts can be classified into one of two categories.
• E) several accounts that generate little sales potential and even fewer that generate high sales potential.

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Definitions:

Intrinsic Value

The inherent worth of an asset, often calculated based on fundamentals, without reference to its market value.

Time Premium

The portion of an option's price that exceeds its intrinsic value, representing the extra amount paid for the possibility that the stock’s price will move before expiration.

Minimum Floor Value

The least possible value guaranteed for a specific financial instrument or investment.

Convertible Bond

This bond variant grants the holder the option to exchange it for a fixed amount of the issuer's stock at specific intervals during the bond's duration, typically based on the bondholder's decision.