SCENARIOS Digital Cookware

question 34

Multiple Choice

SCENARIOS
Digital Cookware
Digital Cookware has developed a new kind of skillet that should make cooking easier for many non-chefs.The skillet has a display on its handle that beeps to alert the cook when the pan's target temperature is reached.The skillet with the aid of an accompanying cookbook will take much of the guesswork out of cooking.Digital Cookware is a small company,and it has invested considerable money in developing this new technology,which it eventually hopes to use in an entire line of pots and pans.It has run some small ads for the new skillet in cooking magazines and been featured on some morning talk shows.It needs a quick infusion of cash to maintain its current operational level and to develop the rest of the cookware line.Digital Cookware is considering some kind of sales promotion.
-Refer to Kraft Foods.Sometimes the compensation plan alone is not enough to motivate a sales team to produce the volume of sales or the profit margin required by management.Which of the following can be used to further motivate a sales team?

• A) cash bonuses
• B) recognition at annual sales meeting
• C) pay raises
• D) the hiring of effective sales leaders
• E) all of these

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.

Net Cash

The amount of cash available after accounting for cash inflows and outflows. It can indicate a company's liquidity position.

Financing Activities

transactions that result in changes in the size and composition of the equity capital and borrowings of the entity, as reported in the cash flow statement.

Net Income

The net income a firm retains after deducting all operational expenses and taxes from its gross revenue.