When a Territory's Sales Are Increasing, but the Sales Level

question 6

Multiple Choice

When a territory's sales are increasing, but the sales level is only 50% of potential, a possible explanation is:

• A) the salesperson is poorly trained and needs additional assistance.
• B) the salesperson is new to the territory and has not had time to develop it properly
• C) the territory is under heavy competitive pressure.
• D) only a and b of the above.
• E) all of the above.

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Definitions:

Capital Budgeting

The procedure of appraising and opting for long-term investments consistent with the goal of increasing the wealth of shareholders.

Straight-Line Depreciation

This refers to a method where the cost of a fixed asset is evenly reduced over its useful life.

Capital Budgeting

The process of making investment decisions in long-term assets and projects, evaluating their potential costs and benefits to ensure the most financially beneficial investments are made.

Straight-Line Depreciation

A technique for distributing an asset's cost uniformly across its lifespan.