Organization of the Sales Force by Customer Type

question 74

Multiple Choice

Organization of the sales force by customer type:

• A) Has the same disadvantages as those associated with organization by product
• B) Allows the use of different selling approaches for different types of customers
• C) Is a natural extension of the market concept
• D) Should be used when a company wants to implement a market penetration strategy
• E) Is accurately described by all of the above

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Definitions:

Effective Yield

A measure of the actual rate of return earned on a bond or fixed-income investment, taking into account the effect of compounding interest.

Present Value Factors

Mathematical factors used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.

Yield 10%

Represents the annual return on an investment, expressed as a percentage of the investment's cost. Here, the investment is expected to return 10% annually.

Bond Interest Expense

The cost that an issuer of bonds incurs over the bond term as interest payments to bondholders, as dictated by the interest rate of the bond.