Grace Is Attempting to Classify a New Account Using Portfolio

question 152

Multiple Choice

Grace is attempting to classify a new account using portfolio analysis.She believes she is in a strong competitive position, but she also believes the account opportunity is low compared to other opportunities. Which of the following best represents what Grace'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) Allocate a moderate level of selling effort in order to maintain the current competitive position.
• E) Both A and C above are good options

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Definitions:

Capital Lease

A lease agreement in which the lessee essentially acquires the ownership rights of the leased asset, also referred to as a finance lease.

Residual Value

The estimated salvage value or the worth of an asset at the end of its useful life.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset over a specified period.

Lease Liability

An obligation representing the present value of future lease payments that a lessee is committed to making under a lease agreement.