Rhonda Is Attempting to Classify a New Account

question 108

Multiple Choice

Rhonda is attempting to classify a new account. She believes the account could be very profitable, but she also believes she is in a weak competitive position. Which of the following best represents what Rhonda's selling effort strategy should be?

• A) Assign the account to a telemarketer until a breakthrough is made.
• B) Make a heavy investment in the selling effort in an attempt to strengthen her competitive position.
• C) Allocate a small portion of her time to the account until her competitive position improves.
• D) Avoid calling on the account until her competitive position improves.
• E) Attempt to maintain her competitive position while prospecting for new accounts.

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Definitions:

Expected Rate of Return

The anticipated percentage increase in value that an investment is predicted to generate over a specific time.

Expected Return

The average of all possible returns for an investment, weighted by the likelihood of each outcome.

Portfolio

A portfolio consists of various financial assets such as shares, bonds, commodities, liquid cash, and equivalents like mutual funds and exchange-traded funds (ETFs).

Stock B

Typically a classification indicating a type of stock with specific rights or characteristics, such as differing voting rights from Stock A in the same company.