A Salesperson with a 7% Higher Than Average Contribution Margin

question 49

Multiple Choice

A salesperson with a 7% higher than average contribution margin and an average profit margin may be:

• A) trading profits for revenues.
• B) buying customers with entertainment.
• C) reaching a territories potential.
• D) trying to penetrate new markets.
• E) none of the above.

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Definitions:

Undisclosed Principal

A person or entity that remains unknown to the third party in a contractual agreement, usually represented by an agent.

Disclosed Principal

In an agency relationship, a principal whose identity is known to the third party at the time of entering into a contract with the agent.

Partially Disclosed Principal

A situation in an agency relationship where the third party knows of the agent's existence but not the identity of the principal.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, when such acts occur within the scope of employment or agency.