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210+ Sales Management Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .

Chapters

Chapter: Sales Organization
51.

……………is the group of individual striving jointly to reach certain goals and bearing formal as well as informal relation to each other.

A. Sales organization
B. Joint venture
C. Sole trader
D. None of the above
Answer» A. Sales organization
52.

In sales organization the work of sales department is divided in …………

A. Group
B. Different task
C. Sole trade
D. In two partners
Answer» B. Different task
53.

A sound sales organization increases …………….

A. Managerial efficiency
B. Organizational behavior
C. Customer relationship
D. Decision
Answer» A. Managerial efficiency
54.

To handle all the jobs and work of sales department is divided into division and …………..

A. Sub division
B. Group
C. Countries
D. Different peoples
Answer» A. Sub division
55.

The principle of ‘Right man on right job’ is followed for assigning these activities to different…………

A. Persons
B. Cities
C. States
D. Departments
Answer» A. Persons
56.

Sales organization helps in developing …………….

A. Group activity
B. Different task
C. Sales force
D. None of the above
Answer» C. Sales force
57.

If the goods are sold on credit bases,………..the amount of ………………is to be collected.

A. Credit sales
B. Credit purchase
C. Cash Sales
D. Bad-debts
Answer» A. Credit sales
58.

Effective and courteous correspondence with customers reflects ……………of the organization to the prospective cutomer.

A. Good image
B. Depreciation
C. Sales
D. Net profit
Answer» A. Good image
59.

Sales department helps the organization in increasing …………………

A. Raw material Purchase
B. Decision making
C. Credit sales
D. Sales Volume
Answer» D. Sales Volume
60.

……………………..bridges the gap between the market and the productive capacity of the firm.

A. Sales Organization
B. Purchase Department
C. General Manager
D. All of the above
Answer» A. Sales Organization
61.

Sales organization defines the relation ship between people in the organization in term of authority, responsibility and ……………

A. Accountability
B. Management
C. Controlling the expenses
D. Process
Answer» A. Accountability
62.

No two companies have ………………..sales organization structure.

A. Identical
B. Different
C. Very few similar
D. None of the above
Answer» A. Identical
63.

The flow of information may be both horizontal and ………………

A. Vertical
B. From bottom to top
C. From top to bottom
D. None of the above
Answer» A. Vertical
64.

The … …………….organization is the basic form of sales organization.

A. Line sales
B. Credit sales
C. Credit purchase
D. Co-operative societies
Answer» A. Line sales
65.

………………….organization is extensively used in similar firms are those dealing in a narrow product line, or selling in a limited geographic area.

A. Line organization
B. Sales department
C. Management
D. Joint venture companies
Answer» A. Line organization
66.

………………………..organization becomes inappropriate in case of rapidly growing organization are those with large sales staff, as growing departments necessitate additional layers of executives to be added.

A. Staff organization
B. Line Organization
C. Parallel organization
D. None of the above
Answer» B. Line Organization
67.

……… and ………….organization sometimes generates problems of interpersonal relation

A. Staff And Line
B. Staff and Square
C. Vertical and horizonal
D. Sales and manufacturing
Answer» A. Staff And Line
68.

……………….specialist do not share direct responsibility for result is also resented by some line executives.

A. Staff
B. Manager
C. Department head
D. None of the above
Answer» A. Staff
69.

The organization is headed managed by ……………….

A. Managing Director
B. Department head
C. Co- Ordinator
D. Employees
Answer» A. Managing Director
70.

The organization is headed by the managing director who has reporting to him line managers called …………….

A. Reginal Manager
B. Deputy Manager
C. Head of the department
D. None of the above
Answer» A. Reginal Manager
71.

Which is not a way that sales forces differs from other employees?

A. Salespeople set their hours of working
B. Salespeople represent their company to customers and to society in general
C. The Sales Force is largely responsible for implementing a firm's marketing strategies in the field
D. Sales people are among the few employees authorized to spend company funds
Answer» A. Salespeople set their hours of working
72.

_________ is actually support the sales persons, perform the promotional activities and work with training and education (may work directly with customer).

A. Sales support
B. Key account seller
C. Delivery seller
D. Missionary seller
Answer» A. Sales support
73.

________ facilitate sales to established accounts, they do not actually sell, per se, but rather leave the selling to the key account personnel or the consultative sales personnel.

A. Sales support
B. Key account seller
C. Delivery seller
D. New business seller
Answer» C. Delivery seller
74.

Which is the following is the correct sequence for coporate selling.

A. Pre-approach, approach, need assessment, presentation, meeting objective, gaining commitment, and follow up
B. Follow up, prospecting, pre-approach, approach, need assessment, presentation, meeting objective, gain commitment
C. Presentation, prospecting, pre-approach, approach, need assessment, meeting objective, gain commitment and follow up
D. Prospecting, pre-approach, approach, need assessment, presentation, meeting objective, gaining commitment and follow up
Answer» D. Prospecting, pre-approach, approach, need assessment, presentation, meeting objective, gaining commitment and follow up
75.

Which one is not a multiple realtionship strategies.

A. Multiple Relationship Strategy
B. All our multiple relationship strategies
C. Consultative Selling
D. Transactional Selling
Answer» B. All our multiple relationship strategies
Chapter: Managing the Sales Force
76.

………………involves identifying activities management feels the salespeople should perform to produce the desired results.

A. SWOT analysis
B. Environmental audit
C. Training analysis
D. Needs assessment
Answer» D. Needs assessment
77.

Which of the following is NOT an example of behavioral measures used to evaluate salespeople?

A. assessment of salesperson's attitude and attention to customers
B. product knowledge and selling and communication skills
C. appearance and professional demeanor
D. accounts generated and profit achieved
Answer» D. accounts generated and profit achieved
78.

Which are the most basic forms of the sales organization?

A. Line sales organization
B. Line and staff sales organization
C. Functional sales organization
D. None of the above
Answer» A. Line sales organization
79.

Companies engage in sales training to:

A. increase absenteeism and turnover
B. increase selling costs
C. decrease sales volume
D. change or reinforce behavior that makes salespeople more efficient
Answer» D. change or reinforce behavior that makes salespeople more efficient
80.

The formula N = S/P (1 + T) is for………………

A. Workload
B. Sales potential (or breakdown)
C. Incremental
D. None of the above
Answer» B. Sales potential (or breakdown)
81.

The sales force can play a central role in achieving a marketing orientation strategy, by

A. Maintaining infrequent contact with customer
B. Collecting and disseminating market information
C. Focusing on cutting costs
D. Following the competition's lead
Answer» B. Collecting and disseminating market information
82.

From management's point of view, what is the advantage of a straight salary compensation plan?

A. With a straight salary plan, selling costs are kept in proportion to sales.
B. The straight salary plan is simple and economical to administer.
C. With a straight salary plan, salespeople have the assurance of positive feedback.
D. A straight salary plan links performance to leadership style.
Answer» B. The straight salary plan is simple and economical to administer.
83.

The most critical impact to a sales organization affected by down-sizing is that:

A. The sales team is de-motivated
B. The company must recalculate sales budgets
C. The sales workload must be redistributed
D. Customers may change suppliers due to severed relationship with salesperson
Answer» D. Customers may change suppliers due to severed relationship with salesperson
84.

The three major tasks involved in the implementation stage of the sales management process are:

A. salesforce recruitment and selection, salesforce training, and salesforce motivation and compensation.
B. Developing account management policies, implementing the account management policies, correcting the account management policies.
C. Setting sales objectives, organizing the salesforce, and developing account management policies.
D. Organizing the salesforce, quantitative assessment, and follow-up.
Answer» A. salesforce recruitment and selection, salesforce training, and salesforce motivation and compensation.
85.

In which method does the net profits will increase when additional salespeople are added, If the increase in the amount of sales revenue exceed the incremental costs?

A. Workload
B. Sales potential (or breakdown)
C. Incremental
D. None of the above
Answer» C. Incremental
86.

An effective sales plan objective should be:

A. Precise, measurable, and time specific.
B. General, measurable, and flexible.
C. Profitable, subjective, and measurable.
D. Precise, profitable, and flexible.
Answer» A. Precise, measurable, and time specific.
87.

If a company chooses to employ its own sales force, the three organizational structures it may use are:

A. Dollar volume, geography, and customer.
B. Geography, customer, and product.
C. Geography, market size, and product.
D. Market size, product, and customer.
Answer» B. Geography, customer, and product.
88.

………………is teaching how to do the jobs.

A. Sales personnel
B. Sales target
C. Sales force training
D. Induction
Answer» C. Sales force training
89.

Which of the following is NOT one of the major factors affecting how compensation is structured for a sales force?

A. wage level in relation to salespeople in other organizations in the industry
B. salesperson's individual wage
C. wage structure for the sales force
D. number of new customers in each sales territory
Answer» D. number of new customers in each sales territory
90.

Which of the following elements is NOT used for determining the size of a sales force in the workload method?

A. Number of salespeople.
B. Number of customers.
C. Length of an average call.
D. Number of years in sales experience
Answer» D. Number of years in sales experience
91.

The most frequently used type of compensation plan is a:

A. Straight salary compensation plan.
B. Straight commission compensation plan.
C. Combination compensation plan.
D. Weighted compensation plan.
Answer» C. Combination compensation plan.
92.

In medium and large firms, one would find the………………types of organization

A. Line sales organization
B. Line and staff sales organization
C. Functional sales organization
D. None of the above
Answer» B. Line and staff sales organization
93.

The first step in determining how a firm's sales force compensation program will be structured is to determine the:

A. Wage level relative to salespeople in other organizations in the industry
B. Salesperson's individual wage
C. Wage structure for the sales force
D. Number of new customers in each sales territory
Answer» A. Wage level relative to salespeople in other organizations in the industry
94.

When commission is combined with a base salary it is known as………………

A. Commission based compensation plans
B. Straight salary compensation plan
C. Territory volume compensation plans
D. Profit margin/ revenue based sales compensation plans
Answer» A. Commission based compensation plans
95.

There are three interrelated elements of rewards for salespeople. One of the elements is nonfinancial compensation and includes:

A. Recognition dinners, certificates of achievement, and features in sales newsletters
B. Larger accounts and sales territories
C. Personal development opportunities, merit salary increases, and promotions
D. Promotions, certificates of achievement, and larger sales territories
Answer» A. Recognition dinners, certificates of achievement, and features in sales newsletters
96.

Research relating sales people’s personal characteristics to sales aptitude and job performance suggests there is no single set of traits and abilities that sales managers can use as criteria for deciding what kind of recruits to hire is known as…………..

A. Job analysis
B. Physical examination
C. Projective tests
D. Training
Answer» A. Job analysis
97.

All of the following would be major sales force management decision steps EXCEPT:

A. Designing sales force strategy and structure.
B. Supervising salespeople.
C. Global management and marketing structures.
D. Recruiting and selecting salespeople.
Answer» C. Global management and marketing structures.
98.

In which organizational structure, all sales personnel receive direction from, and are accountable to different executives, on different aspects of their work?

A. Line sales organization
B. Line and staff sales organization
C. Functional sales organization
D. None of the above
Answer» C. Functional sales organization
99.

Which of the following WOULD NOT be a method of establishing sales force structure?

A. Territorial sales force structure.
B. Lifestyle sales force structure.
C. Product sales force structure.
D. Customer sales force structure.
Answer» B. Lifestyle sales force structure.
100.

In which type of compensation plan there is no incentives?

A. Commission based compensation plans
B. Straight salary compensation plan
C. Territory volume compensation plans
D. Profit margin/ revenue based sales compensation plans
Answer» B. Straight salary compensation plan

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