Business Services Business Services Sales and Business Development 3

Question 1

What is a 'sales quota' and why is it used?

Accepted Answer

A minimum sales target assigned to a salesperson or team for a specific period, used to measure performance

Answer

A cap on the number of clients a salesperson can manage at one time

Answer

A mandatory discount threshold that must be approved by a manager

Answer

A legal limit on the number of cold calls allowed per day under FTC regulations

Question 2

What does BATNA stand for in business negotiation?

Accepted Answer

Best Alternative To a Negotiated Agreement

Answer

Business Alignment Through Needs Analysis

Answer

Budget Authorization and Terms for New Accounts

Answer

Baseline Assessment of Total Net Assets

Question 3

What is a 'channel partner' in a business development strategy?

Accepted Answer

A third-party company or individual that sells or distributes a company's products on its behalf

Answer

An internal sales team focused exclusively on enterprise accounts

Answer

A media outlet that carries paid advertising for a company's products

Answer

A financial institution that provides credit to business customers

Question 4

What does 'account penetration' mean in sales and business development?

Accepted Answer

Expanding the share of business a company captures within an existing client account over time

Answer

The process of acquiring a competitor's customer base through aggressive pricing

Answer

Auditing a client's financial accounts to assess creditworthiness

Answer

The initial outreach made to a new prospect to schedule a first meeting

Question 5

Why might a company offer a 'pilot program' during the business development process?

Accepted Answer

To allow a potential client to test the product or service at a limited scale before committing to a full contract

Answer

To train new sales hires on product knowledge before their first client meeting

Answer

To run a limited-time promotional discount available only to existing customers

Answer

To evaluate a new vendor on a small project before awarding a larger contract

Question 6

What is 'cross-selling,' and how does it differ from upselling?

Accepted Answer

Cross-selling recommends complementary products alongside what a customer is buying; upselling encourages a premium version of the same product

Answer

Cross-selling offers a higher-tier version of the same product; upselling recommends a related product

Answer

Cross-selling targets existing customers; upselling exclusively targets new prospects

Answer

Cross-selling applies to B2C markets; upselling is used only in B2B sales

Question 7

What is a key advantage of a structured referral program in sales?

Accepted Answer

It leverages satisfied customers to generate warm leads, which typically convert at a higher rate than cold outreach

Answer

It eliminates the need for a dedicated sales team by automating lead generation entirely

Answer

It allows companies to avoid compliance requirements associated with traditional advertising

Answer

It guarantees a fixed number of new customers each quarter regardless of market conditions