The third objective of sales management is to use assets effectively, which includes two approaches: managing stock and managing debt. Stock objectives prevent businesses from taking on unprofitable small orders and help balance client service with inventory levels. Debtor objectives focus on reducing the amount owed by ensuring clients are creditworthy and promptly addressing overdue invoices. Companies recognize that even small improvements in asset use can lead to significant benefits.

Question

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Answer 1

The third goal of sales management is to use resources wisely, which involves two main areas: managing stock and managing debt. Stock management helps avoid unprofitable small orders and balances customer service with inventory. Debtor management aims to decrease amounts owed by ensuring customers are reliable and quickly handling overdue bills. Companies know that even small improvements in using assets can bring big benefits.