The Span of Control Should Be Smaller and the Number

question 7

Multiple Choice

The span of control should be smaller and the number of levels of management should be larger when:

• A) The salespeople in the company are well paid and professional
• B) The salespeople in the company are new inexperienced recruits
• C) The sales task is relatively simple
• D) The profit impact for the performance of each individual salesperson is low
• E) The sales job is defined as easy by the people hired to sell

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Definitions:

Imitation

The act of copying or mimicking the products, services, or processes of competitors, often seen as a strategy to gain market share without incurring development costs.

Direct Imitation

The process of creating a product or service that closely mimics the features of an existing product or service.

Legal Expenses

Costs associated with legal services, advice, or representation.

Monopolistic Competitors

Firms in a market structure where many companies sell products that are similar but not identical, leading to product differentiation and some price control.