Regarding the Number of Sales Reps That a Company Needs

question 107

Multiple Choice

Regarding the number of sales reps that a company needs to hire:

• A)Management should hire many more than are needed with the intent of weeding out poor performers as time goes by.
• B)Changing the channels-of-distribution structure in a region does not affect the number of reps needed in that region.
• C)Substituting a telemarketing program for 50 percent of the in-person sales calls has no affect on the size of the sales force.
• D)A company should hire only the number needed.
• E)None of these is correct.

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Definitions:

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus liabilities and intangible assets.

Equipment Replacement

The process of substituting old, outdated, or failed machinery with newer, more efficient models or versions to maintain or enhance production efficiency.

Opportunity Costs

The benefit lost when one alternative is chosen over another, representing the cost of forgoing the next best alternative.

Accounts

This term involves the records that summarize transactions affecting the financial position and operating results of a business.