Use the Table for the Question(s)below

question 94

Multiple Choice

Use the table for the question(s) below.
-If the above balance sheet is for a retail company, what indications about this company would best be drawn from the changes in shareholders' equity between 2017 and 2018?

• A)The company is very profitable because it is obviously collecting receivables faster.
• B)The company's net income in 2018 was negative.
• C)The company is selling its property, plant and equipment, which may result in a long-term deficiency in production capacity.
• D)No conclusions can be drawn regarding shareholders' equity without additional information.

Understand the various sales compensation plans and their impact on salesforce behavior.

Identify and describe different measures used in quantitative assessments of sales performance.

Recognize the use of behavioral measures in evaluating salesperson performance.

Understand the importance of customer satisfaction and its inclusion as a performance metric.

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Definitions:

Product Life Cycle

The stages a product goes through from introduction to the market, growth, maturity, and eventual decline.

Skimming Pricing Strategy

A pricing approach where a high initial price is set for a new product to "skim" revenue layers from the market.

Product Life Cycle

The series of stages a product goes through from development and introduction to the market, through growth, maturity, and eventually decline.

Industry Profits

The total earnings generated by companies within a specific sector or industry after all expenses are subtracted.