In Multilevel Marketing,salespeople Have an Incentive To

question 56

Multiple Choice

In multilevel marketing,salespeople have an incentive to:

• A)recruit new salespeople,because they receive a commission on the sales made by the people they recruit.
• B)perform as many of the marketing functions as possible,because each function they perform adds to their commission.
• C)sell the product using both direct and indirect marketing methods in order to reach different types of customers.
• D)limit the number of salespeople in their franchise area so that they can maximize their own sales.

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing future economic benefits.

Capital Balances

Refer to the cumulative amounts of money or value that partners or shareholders have contributed to a company, inclusive of earnings and minus any losses.

Profits and Losses

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period.

Billable Hours

The amount of an employee's work time that can be charged to a client, as in the context of professional services like legal advice or consultancy.