Outcome Bias Occurs When a Sales Manager

question 23

Multiple Choice

Outcome bias occurs when a sales manager:

• A) Allows the outcome of a mistake made by a salesperson to overly influence the his or her decision
• B) Allows the basis of a decision made by the manager to overly influence the salesperson
• C) Allows the basis of a decision made by a salesperson to overly influence the his or her decision
• D) Allows the input of a decision or a series of decisions made by a manager to overly influence the performance ratings made by the manager
• E) Allows the outcome of a decision or a series of decisions made by a salesperson to overly influence the performance ratings made by the manager

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Definitions:

Inventories

Items such as goods or merchandise held by a company, intended for sale or production.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing its total liabilities by its total assets.

TIE Ratio

The Times Interest Earned (TIE) ratio is a financial metric used to measure a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing the net income and the revenue of a company.