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Use This Information for Questions That Refer to the "Salespeople

question 65

Multiple Choice

Use this information for questions that refer to the "Salespeople" case. Wilson Alvaro graduated with a marketing degree almost a year ago.Like many of his friends,he took a job in sales and he really enjoys it.A description of Wilson's job and those of some of his friends follows.
Wilson Alvaro loves biking and has his dream job.He works for a wholesale company that sells mountain bikes for a manufacturer.He works with a small group of people who call on the buying offices for two large retail chains,Walmart and Toys "R" Us.The group includes a finance person and a production person,and they all work together to meet the specific needs of these two big accounts.For example,sometimes they recommend a model of bike that will be available from only that retailer's stores.However,Wilson's main job focuses on building relationships and solving customer problems.Only occasionally is he expected to try to persuade the retailers to buy more bikes.
Amy Bowden sells life insurance.She calls on new parents and persuades them to buy insurance products.It is difficult for a manager to control Amy's work,but she has incentive to work hard because her job security and income depend on getting sales.She is a confident self-starter,so she likes it that way.
Ben Peterson works for a fashionable men's clothing store.He enjoys spending time with customers who come in,learning about their fashion needs,and helping them pick clothes that really work for them.While the store manager can easily observe and direct Ben's activities,the manager wants Ben to have the incentive to increase customer purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor.She deals with a regular set of established customers,most of whom know what they want.Emily talks to them on the phone and answers questions about products,delivery time,and pricing.She sometimes works with outside sales reps who visit customers and help introduce new products.Emily is the first person her customers call when there's a problem with a purchase,so she spends a lot of time dealing with customer problems.As an inside salesperson,Emily's work is easily supervised by a sales manager,and Emily has little influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins,paper towels,and paper plates) primarily through small independent grocers.Most of the grocers are regular customers,but sometimes Melissa makes cold calls to new grocery stores.Melissa's job is to develop goodwill and try to increase sales.For example,she often sets up special promotional displays in stores.Her compensation plan gives her income security,but she can also receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider.He calls people on a list provided by his firm and tries to sign them up for Internet service.Charlie relies heavily on a presentation he learned during his training.Charlie is very good at what he does and loves that the more success he has,the more he earns.
Which salesperson probably does the most prospecting?

Definitions:

Noncash Charges

Expenses reported on an income statement that do not involve actual cash flow, such as depreciation, amortization, and stock-based compensation.

Noncash Credits

Transactions that increase a company's assets or decrease liabilities without the direct movement of cash.

Indirect Method

A technique used in cash flow statements to adjust net income for non-cash transactions, deferrals, and accruals to compute operating cash flow.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the loss of value over time.