Identify a True Statement About Sales Accounts Classification and Resource

question 35

Multiple Choice

Identify a true statement about sales accounts classification and resource allocation.

• A) The proportion of unprofitable accounts is minimal;therefore,all accounts should have equal allocation of resources.
• B) As a rule,80 percent of the sales in a territory come from only 20 percent of the customers.
• C) Salespeople should avoid classifying customers on the basis of their sales potential.
• D) All customers have the same buying potential,just as all sales activities produce the same results.
• E) Salespeople should maximize effort spent with the customers who offer little opportunity for profitable sales.

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Definitions:

Real Rate of Interest

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to lenders or investors.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling over time.

Real Rate of Return

The yearly rate of return on an investment, corrected for price changes stemming from inflation or external factors.

Annual Interest Rate

The percentage of the principal that is paid as interest to the lender over the course of one year, not accounting for compounding.