Nate Is Preparing to Evaluate One of His Sales Representatives

question 90

Multiple Choice

Nate is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the previous year led to the conclusion that she often lacked key product information at sales presentations. At their upcoming session, he will most likely do which of the following?

• A) Decrease the size of her territory.
• B) Increase her sales quotas.
• C) Terminate her.
• D) Recommend that she attend a training program.
• E) Ignore this problem given that her sales results were good.

---

Definitions:

Residual Income

A measure of performance that calculates the income an investment generates above the minimum required return.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from operating income.

Average Operating Assets

The average value of the assets used in the normal operations of a business over a specific period, typically used in return on investment calculations.

Balanced Scorecard

An integrated set of performance measures that are derived from and support the organization’s strategy.