Which of the Following Statements Regarding the Use of the Portfolio

question 155

Multiple Choice

Which of the following statements regarding the use of the portfolio model to allocate selling effort is false?

• A) More attractive accounts receive more selling effort.
• B) It can be a valuable tool for helping sales managers improve their account effort allocation strategy.
• C) All accounts are classified into categories of similar size to determine the level of sales effort needed.
• D) Each account served by a firm is considered as part of an overall portfolio of accounts.
• E) Each account segment represents a different situation and should receive a different level of selling effort.

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Definitions:

Fair Value

An estimate of the market value of an asset, determined by mutual agreement between a willing buyer and seller, each possessing adequate information.

Good Faith

Acting with honesty and without the intention to defraud or to seek an unfair advantage.

Without Alteration

A term referring to maintaining the original state or condition of something without any changes or modifications.

Lack of Consideration

A legal concept indicating the absence of a necessary element in a contract, where one party does not provide a promised payment or service in exchange for the other's offering.