Chapter-5 - Chapter 5: Revenue Strategy MULTIPLE CHOICE 1....

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Chapter 5: Revenue Strategy MULTIPLE CHOICE 1. ____ often leads to communication barriers. a. Shifting of the venture from one location to another b. Promotions within the organization c. Division of labor d. Absences ANS: C The division of labor often leads to communication barriers and other problems that must be managed. REF: 5-1 2. A revenue stream refers to ____. a. Pay-out to the employees b. The cash flowing out of the venture as a result of purchase c. The cash coming into the venture as a result of sales d. None of the above ANS: C A revenue stream refers to the cash coming into the venture as a result of sales. REF: 5-1 3. A ____ is a distinguishable advantage that a firm is able to develop, protect, and defend from rivals. a. Small company advantage b. Small competitive advantage c. Sustainable competitive advantage d. Single company advantage ANS: C An sustainable competitive advantage is a distinguishable advantage, or differentiator, that a firm is able to develop, protect, and defend from rivals. REF: 5-2a 4. How can a venture protect a sustainable competitive advantage? a. By using trademarks b. Copyrights c. Patents and trade secrets d. All of the above ANS: D The venture can protect an SCA in a number of ways, including trademarks, copyrights, patents, and trade secrets. REF: 5-2a 5. ____ are payments made to salespeople based on the number of units they are responsible for selling. a. Profits b. Commissions c. Interests
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d. Premium ANS: B Commissions are payments made to salespeople based on the number of units they are responsible for selling. REF: 5-2b 6. Which of the following is not a component of total compensation? a. Salary b. Benefits c. Profits d. Contests ANS: C Total compensation for salespeople has at least six components: Salary, incentive pay, expenses, benefits, contests, and recognition. Sales compensation includes both salary and incentive pay. REF: 5-2b 7. Which of the following forms part of total compensation as well as sales compensation? a. Incentive pay; salary b. Salary; expenses c. Benefits; salary d. Recognition; salary ANS: A Total compensation for salespeople has at least six components: Salary, incentive pay, expenses, benefits, contests, and recognition. Sales compensation includes both salary and incentive pay. REF: 5-2b 8. Sales compensation includes both ____ and ____. a. Salary; expenses b. Benefits; salary c. Incentive pay; salary d. Recognition; salary ANS: C Sales compensation includes both salary and incentive pay. REF: 5-2b 9. A selling technique that provides some flexibility for the salesperson to alter the marketing message within reasonable boundaries based on the needs of a particular customer is called ____. a.
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Chapter-5 - Chapter 5: Revenue Strategy MULTIPLE CHOICE 1....

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