AdVance Corporation Is a Company That Formulates and Manufactures Fertilizers

question 2

Multiple Choice

AdVance Corporation is a company that formulates and manufactures fertilizers for the farming industry.The company produces several standardized formulas that can be purchased directly through the retail arms of the company,but it also formulates custom fertilizers for farms.
-John Collins has been a sales rep for AdVance for 18 years.When he began his career with AdVance he followed the money and sold to any customer he could convince to buy.In the last 15 years,however,he has been focusing on acting with integrity in every selling situation.As a result,he has discovered that his immediate close rate on sales has gone down,but that he has developed a highly profitable group of long-term customers.What principle does this demonstrate?

• A)transactional sales are built on lower prices
• B)acting with integrity can be counterproductive to a salesperson
• C)no amount of professional success is worth sacrificing integrity
• D)a sales rep can have a long career even with low sales
• E)trust is the necessary basis for a long-term relationship

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Definitions:

Net Income

The amount of money remaining after all operating expenses, taxes, interest, and dividends are deducted from total revenue; a key indicator of company profitability.

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business.

Dividends

Profits distributed by a corporation to its shareholders from its earnings.

Classified Balance Sheet

A detailed financial statement that separates assets, liabilities, and equity into subcategories for clearer analysis.