Gross Margin Quotas Make More Sense Than Sales Volume Quotas

question 22

Multiple Choice

Gross margin quotas make more sense than sales volume quotas:

• A)If the salespeople are paid by commission.
• B)If the sales reps have control over prices.
• C)If the sales force pays its own expenses.
• D)All of these.
• E)None of these.

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Definitions:

European Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell an asset at a specified price only on the option's expiration date.

Conversion Price

The price per share at which a convertible security, such as convertible bonds or convertible preferred stock, can be converted into common stock.

American Option

A type of options contract that allows the holder to exercise the option at any point up to and including the expiration date.

European Option

A variety of option agreement that is exercisable solely on its expiry date, with no possibility of earlier execution.