Lin Is Performing a Sales Call at a Start-Up Company

question 69

Multiple Choice

Lin is performing a sales call at a start-up company.Upon asking enough probing questions, the customer reveals that they are really tight on their allocated budget for her company's product and they may not be able to fully afford them all.After gaining this information, Lin tells them that, "I can understand how you are feeling, as our company was also a start-up and we faced similar challenges like yours...".Her statement is an example of:

• A)Relationship building
• B)Relationship selling
• C)Understanding
• D)Empathy
• E)Needs analysis

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Definitions:

Debt-to-equity Ratio

This proportion demonstrates the relative use of debt and shareholders' equity in the capital funding of a company's assets.

Receivable Turnover

A financial metric indicating how efficiently a company collects cash from credit sales by measuring the number of times average accounts receivable are collected over a period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.