Which of the Following Ratios Does NOT Reflect How Well

question 10

Multiple Choice

Which of the following ratios does NOT reflect how well a salesperson is capturing the potential business that exists in his or her territory?

• A) Account penetration ratio
• B) The cost per call ratio
• C) The new account conversion ratio
• D) The sales per account ratio
• E) The average order size ratio

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Definitions:

Contractual Agreement

A legally binding contract between two or more parties outlining terms and conditions of an agreement.

Par Value

The nominal value of a bond or stock as stated by the issuer, unrelated to its market value.

Cash Flows

The total amount of money being transferred into and out of a business, principally involving operating, investing, and financing activities.

Annuity

A financial product that pays out a fixed stream of payments to an individual, often used as an income stream for retirees.