Aspen Stewart Is One of Five Sales Managers at a Sports

question 17

Multiple Choice

Aspen Stewart is one of five sales managers at a sports equipment company.She and the other sales managers are under pressure from management to keep their teams of sales representatives motivated and hitting their sales quotas.Because of that,Aspen has studied psychology and motivation,and is always looking for better ways to motivate her team.
-While they are discussing compensation,the sales managers and director of sales also decide how to evaluate sales production levels.The company's policy was to compare each sales representative's sales to their sales the previous year.Which of the following is the strongest argument for changing this method of evaluation?

• A)Sales representatives do not always sell the same amount each year.
• B)Sales representatives should not be evaluated by the amount that they sell.
• C)When prices change or products are introduced or dropped this can change sales amounts so yearly figures are not comparable.
• D)Because of seasonal sales cycles,amounts should be compared quarter to quarter,not year to year.
• E)Comparison should be made to the group as a whole,not individuals to themselves.

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Definitions:

Order Instrument

A financial document that is payable to a specific person or entity, distinguishing it from bearer instruments which are payable to whoever holds the document.

Bearer Instrument

A type of financial security that is payable to the holder or presenter of the document.

Endorsement

An amendment or addition to an existing document or policy, especially in the context of insurance, or it can also mean the act of publicly supporting a product, service, or person.

Transferable

Characteristic of an asset or right that allows it to be passed from one party to another, often through sale or trade.