Business Management Study Guide
Questions
Course Introduction
Business Management is a comprehensive course designed to introduce students to the foundational principles, concepts, and practices essential to managing organizations effectively. The course explores key areas such as planning, organizing, leading, and controlling, while emphasizing decision-making, leadership, strategic development, and resource allocation. Through both theoretical frameworks and real-world case studies, students learn about organizational structures, human resource management, marketing strategies, financial analysis, and ethical considerations in business. By the end of the course, students gain a holistic understanding of the roles and responsibilities of managers, preparing them to navigate challenges and drive success within diverse business environments.
Recommended Textbook
Dalrymples Sales Management Concepts and Cases 10th Edition by William L. Cron
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Chapter 1: Introduction to Selling and Sales Management
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Sample Questions
Q1) Procter & Gamble recently adopted more of a solutions selling approach by reorganizing its sales force into teams to represent all P&G product divisions sold to the same retail account, instead of having a separate sales force for each product division.
A)True
B)False
Answer: True
Q2) Advertising is generally more effective than personal selling in closing the sale.
A)True
B)False
Answer: False
Q3) One change many sales forces are experiencing is that they are spending more time meeting with people inside their own company.
A)True
B)False
Answer: True
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Chapter 2: Strategy and Sales Program Planning
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Sample Questions
Q1) Which of the following is the <b>least</b> important factor in strategic planning?
A) setting objectives
B) formulating strategies
C) determining the budget
D) corporate public relations
E) monitoring results
Answer: D
Q2) In transactional relationships, the primary persons directly involved with customers are the______ and the_________ .
A) sales manager, customer service representative
B) salesperson, sales manager
C) salesperson, customer service representative
D) only a and b above
E) a, b, and c are all true.
Answer: E
Q3) Supply chain management is a Level 1, top management decision.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Sales Opportunity Management
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Sample Questions
Q1) Cold canvassing is a common method of prospecting in consultative type of selling.
A)True
B)False
Answer: False
Q2) Research has shown that the number of calls required to close a sale is about the same regardless of the type of product or service being sold.
A)True
B)False
Answer: False
Q3) Paths for increasing the value of a firm's customer base include which of the following?
A) acquiring new customers
B) reducing the turnover of existing customers
C) charging higher prices
D) both a and b above are true
E) all the above are true.
Answer: D
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Page 5
Chapter 4: Account Relationship Management
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Sample Questions
Q1) The person in the User Buyer role generally has a much broader product focus than does the Economic Buyer.
A)True
B)False
Q2) It is possible for one person to function in the roles of being the user, economic, and technical buyer for a particular purchase.
A)True
B)False
Q3) Which of the following encourages parties to progress into a fully committed buyer-seller relationship?
A) the creation of value
B) building trust in your partner
C) meeting each partner's expectations
D) both a and b above
E) all of the above
Q4) The role of the user buyer is to determine the impact of the purchase on the job in which the product is used.
A)True
B)False
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Chapter 5: Customer Interaction Management
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Sample Questions
Q1) Written sales proposals have all of the following advantages over oral sales proposals <b>except</b>:
A) they often help buyer-seller communications.
B) they may be read and evaluated over time.
C) they are less expensive and quicker to prepare.
D) they lessen the chance of misunderstandings.
E) all of the above are advantages of written sales proposals.
Q2) "Recognition by one's boss" is an example of a personal motive for making a purchase decision.
A)True
B)False
Q3) The main objective of a salesperson's formal presentation is:
A) to explain how the salesperson's product meets the special needs of the customer.
B) establishing rapport with the customer.
C) to minimize all other competitive products on the market.
D) to handle concerns effectively.
E) none of the above.
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Chapter 6: Sales Force Organization
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Sample Questions
Q1) The primary objective of forming a functional team sales organization is to develop a closer customer relationship when servicing existing customers.
A)True
B)False
Q2) Most sales forces are organized along functional lines.
A)True
B)False
Q3) Independent sales agents are almost always compensated by paying a commission on sales.
A)True
B)False
Q4) A company is considering whether to hire independent agents or develop its own sales force. Agents are paid a 4% commission, alternatively a company sales force would consist of 6 people paid a $25,000 salary each along with a 2% commission. A company sales force is economically viable if sales are forecasted to be:
A) below $1,250,000.
B) above $1,250,000.
C) below $7,500,000.
D) above $7,500,000.
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Chapter 7: Recruiting and Selecting Personnel
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Sample Questions
Q1) Recently, a sales manager posted a job description as the merchandising of sales promotions to store managers. However, the high performing salespeople actually spent their time stocking shelves and checking inventory. The salespeople hired to sell to store managers were unhappy when they found out that the job is really that of a glorified stock clerk. This sales manager failed to conduct:
A) an analysis of the company culture.
B) an analysis of the recruits' job qualifications.
C) an analysis of the recruits' reasons for wanting the job.
D) a job analysis.
E) a thorough interview.
Q2) Hiring salespeople who have a different perspective than that of your company culture will always improve an organization because they bring a new cultural perspective.
A)True
B)False
Q3) Hiring experienced salespeople is used when the firm needs new salespeople to be productive in a short amount of time.
A)True
B)False
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Page 9
Chapter 8: Training
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Sample Questions
Q1) As the sales manager of a Fortune 500 branch office, you understand there are different outcomes for different sales training programs. However, you know that the ultimate objective of any training program is to:
A) build enthusiasm and confidence.
B) reduce turnover.
C) increase sales and profits of the firm.
D) teach salespeople how to manage their time.
E) improve selling skills of sales representatives.
Q2) Sales managers should schedule periodic retraining sessions for even the most highly successful, experienced salespeople.
A)True
B)False
Q3) The ultimate objective of any training program is to increase the sales and/or profits of the firm.
A)True
B)False
Q4) Training salespeople seldom reduces turnover or role ambiguity.
A)True
B)False
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Chapter 9: Leadership
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Sample Questions
Q1) The leading cause of plateauing for women is:
A) loss of interest in selling.
B) not having economic needs met.
C) not being adequately managed.
D) burn out from the job.
E) reluctance to be transferred.
Q2) Which of the following is <b>not</b> one of the suggested approaches to sexual harassment?
A) the direct approach by saying "no"
B) the retaliatory approach by defending yourself with physical force
C) the humorous approach
D) the avoidance approach by leaving without confrontation
E) the consequence approach
Q3) Selling teams are most effective when there is a high level of trust among its members.
A)True
B)False
Q4) Legitimate power is based on a manager's position in the organization.
A)True
B)False
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Chapter 10: Ethical Leadership
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Sample Questions
Q1) Entertainment provided for customers:
A) is always ethical.
B) is basically unethical.
C) is not standard American business practice.
D) can sometimes lead to ethical problems.
E) b and c of the above.
Q2) According to the text, the most frequent area for ethical abuse in a sales organization usually occurs with:
A) promotions.
B) hiring.
C) firing.
D) expenses accounts.
E) house accounts.
Q3) Conventional morality can be expressed as "When in Rome, do as the Romans do."
A)True
B)False
Q4) General values and norms of society can affect managerial decisions.
A)True
B)False
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Chapter 11: Motivating Salespeople
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Sample Questions
Q1) As a sales manager, it may well be up to you to select the prizes for a sales contest. Which of the following is(are) <b>TRUE</b> about prizes?
A) You should set up the contest so that most of the sales force (more than 50%) will be motivated to win something.
B) Merchandise is the most frequently given award because tangible items can be displayed to the sales force, featured in promotional material, and purchased at wholesale prices.
C) The incentive sales meeting, in an exotic location, is decreasing in popularity. This is largely due to increased cost and the fact that the very people who need exposure to such meetings often fail to qualify for the award.
D) All of the above.
E) None of the above.
Q2) Studies reveal little support for the common sense belief that salespeople typically set their quotas low so they are easily achieved.
A)True
B)False
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Chapter 12: Compensating Salespeople
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Sample Questions
Q1) A major objective of a well-designed compensation package is to:
A) provide equal pay to all employees at the same level.
B) Increase sales and revenues.
C) provide extensive benefits.
D) encourage a "hard sell" attitude among the sales force.
E) micromanage salesperson behaviors.
Q2) According to compensation surveys, ales managers typically earn less than the top reps in their district when sales reps are on an incentive-based plan.
A)True
B)False
Q3) It is not clear that offering unlimited opportunities to earn higher pay will always be an effective method for continued salesperson motivation.
A)True
B)False
Q4) Straight salary plans often do not provide strong incentive for extra effort. A)True B)False
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Chapter 13: Evaluating Sales Force Performance
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Sample Questions
Q1) Another way to identify problem areas from performance data is to look at sales by product line.
A)True
B)False
Q2) Which of the following is generally not a useful task performed by the sales manager or someone in the sales department.
A) sales performance analysis.
B) cost and profit analysis of sales calls.
C) behavioral control analysis.
D) an analysis of controllable expenses.
E) none of the above (all are useful).
Q3) Which of the following is(are) (a) reasonable interpretation(s) of these data?
A) Rosen, Jr.'s high volume is due to a large territory.
B) Rosen, Jr.'s high volume is due to making a large number of calls and selling small amounts to each customer.
C) Rosen, Jr.'s low margins are the result of price-cutting to open new accounts and boost sales.
D) all of the above.
E) none of the above. I mean, are you kidding?
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Page 15
Chapter 14: Estimating Potentials and Forecasting Sales
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Sample Questions
Q1) Sales force composite methods involve regression analysis.
A)True
B)False
Q2) For best results, always seasonally adjust time series data.
A)True
B)False
Q3) When forecasting time series data with cyclical patterns, an analyst using simple regression can base the forecasting equation on the logarithms of the data.
A)True
B)False
Q4) The major decision with exponential smoothing forecasts is determining the ideal number of periods to include in the average.
A)True
B)False
Q5) When using the trend projection method, the analyst estimates trend from past data and adds this figure to current sales to obtain a forecast.
A)True
B)False
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Chapter 15: Territory Design
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Sample Questions
Q1) The workload approach to territory design is usually more suitable in situations where salespeople are on salary.
A)True
B)False
Q2) The most popular approach to designing sales territories is known as the buildup method.
A)True
B)False
Q3) Current dollar sales in an area is the best criterion to use in building sales territories.
A)True
B)False
Q4) Before deciding on an allocation criteria, you should:
A) choose starting points.
B) combine control units adjacent to starting points.
C) select geographic control units.
D) both a and b are correct.
E) none of the above are correct.
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Chapter 16: Sales Force Investment and Budgeting
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Sample Questions
Q1) A good sign that your sales force may be too large is when your finance department mentions that your sales force costs are out of line with industry norms.
A)True
B)False
Q2) The percentage of sales method of establishing sales force size is based on what managers think sales force costs should be as a proportion of planned revenues.
A)True
B)False
Q3) According to the sales budgeting process discussed in your text, the first step of the process is to:
A) forecast sales.
B) design the marketing program.
C) estimate personal selling costs.
D) examine actual costs from the previous period.
E) none of the above.
Q4) If the sales force needs to be downsized, then it is best to do it gradually.
A)True
B)False
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