A Sales Manager Has Implemented a Program for His Salespeople

question 22

Multiple Choice

A sales manager has implemented a program for his salespeople that involves a meeting with each salesperson, during which the sales manager gives the salesperson the yearly quota for the salesperson's territory. The sales manager has missed the key concept in management by objectives, which is

• A) reducing the paperwork involved in the MBO process.
• B) a mutual understanding of the punishment to be given if the salesperson does not meet the goal set by the sales manager.
• C) mutual goal setting between the sales manager and the salesperson.
• D) documentation of the sales quota in the salesperson's personnel file.
• E) ensuring that the economy can support the sales quota assigned.

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Definitions:

Expected Profit

The forecasted amount of profit calculated by multiplying potential outcomes by their probabilities of occurrence.

Expected Profit

The anticipated financial return from an investment or business activity, considering potential risks and earnings.

Optimal Quantity

The most favorable amount of goods or services, determined through analysis, to meet specific objectives like minimizing costs or maximizing profit.

Surplus Inventory

Inventory exceeding the current demand, leading to excess stock that may require special handling or discounting.