2026 NABTEB SALESMANSHIP ANSWERS


SALESMANSHIP (TYPE C)
01-10: CCABABCBCD
11-20: BCCCCABABA
21-30: AADAABBBBB
31-40: DBDBDADACC
41-50: ACBCDDADDD
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NOTE: In this theory, Type A, B, C & D are the same but reshuffled. Use the answers provided to trace the correct questions in your booklet before answering. WE USED TYPE-D IN SOLVING, SO TRACE FROM YOUR QUESTIONS BEFORE COPYING THE ANSWERS.

_INSTRUCTION: ANSWER FIVE(5) QUESTIONS ONLY_

(1a)
Agency is a legal relationship in which one person (called the agent) is authorized to act on behalf of another person (called the principal) in dealings with third parties.

(1b)
(i) Transferability: A negotiable instrument can be transferred from one person to another either by delivery (in the case of bearer instruments) or by endorsement and delivery (in the case of order instruments). The transferee obtains the right to claim payment in his own name, making it easily negotiable in business transactions.

(ii) Payable to order or bearer: A negotiable instrument is usually drawn in such a way that it is payable either to a specific person (order) or to anyone who possesses it (bearer). This feature makes it flexible and widely acceptable in commercial dealings as it can circulate easily like money.

(iii) Holder in due course enjoys good title: A person who acquires the instrument in good faith, for value, and without notice of any defect becomes a holder in due course. Such a holder has a strong legal right to receive payment, even if previous holders had problems with the instrument.

(1c)
(i) Duty of loyalty: An agent must act honestly and always in the best interest of the principal, avoiding any personal gain that may conflict with the principal’s interest.

(ii) Duty of obedience: An agent must obey all lawful instructions given by the principal and carry them out properly.

(iii) Duty to render account: An agent must keep proper records and report all transactions and money handled on behalf of the principal.
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(2a)
(i) Difficulty in identifying genuine customers: Salesmen often struggle to find people who truly need or can afford the product, making prospecting uncertain and less productive.

(ii) High cost and time consumption: Prospecting requires travelling, making enquiries, and repeated visits to potential customers, which increases cost of sales and consumes valuable time.

(iii) Poor response from prospects: Many potential customers may refuse to listen, avoid salesmen, or show no interest, which reduces the effectiveness of prospecting efforts.

(2b)
(i) Better understanding of customers: Pre-approach helps the salesman to gather useful information about the customer’s needs, buying habits, and financial ability before making contact.

(ii) Improves chances of making a sale: With proper preparation, the salesman can design an effective presentation that matches the customer’s needs, increasing the likelihood of closing the deal.

(iii) Saves time and reduces waste of effort: By planning ahead, the salesman avoids visiting unsuitable prospects and focuses only on qualified customers, making sales work more efficient.

(2c)
(i) Personal canvassing
(ii) Referrals from existing customers.
(iii) Advertising
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(3a)
Personality refers to the unique combination of traits, characteristics, attitudes, and behaviours that distinguish one individual from another. It influences the way a person thinks, feels, and behaves in different situations.

(3b)
(i) Culture influences consumers' tastes and preferences: Culture determines the kinds of food, clothing, music, and products people prefer. Consumers often choose products that conform to their cultural values and traditions.

(ii) Culture affects buying habits and consumption patterns: The customs and traditions of a society influence when, where, and how consumers buy goods and services. For example, certain products experience high demand during festivals and cultural celebrations.

(iii) Culture determines acceptable products and behaviour: Cultural beliefs influence what products people consider acceptable or unacceptable. Some products may be rejected because they conflict with religious or cultural practices.

(iv) Culture influences values, attitudes, and lifestyles: People's values and beliefs shape their attitudes toward brands and products.
This affects their purchasing decisions, spending patterns, and overall consumption behaviour.

(3c)
(i) Choice of products and brands: A person's personality affects the type of products, brands, and styles they prefer. For example, an adventurous person may prefer fashionable or innovative products, while a conservative person may prefer familiar brands.

(ii) Buying decisions and purchasing habits: Personality influences the way consumers make decisions. Some people are impulsive buyers, while others are careful and deliberate before making purchases. This affects how often they buy and the amount they spend.
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(4a)
A partnership deed is a written legal agreement between partners that outlines the rules, duties, rights, and profit-sharing arrangements governing a partnership business. It helps to prevent disputes by clearly stating how the business will be managed.

(4b)
(i) Ability to raise large capital: Public limited companies can raise huge capital by selling shares and debentures to the public through the stock exchange. This makes it possible for them to finance large-scale projects and expand operations easily.

(ii) Limited liability of shareholders: Shareholders are only liable for the amount they invested in the company. Their personal assets are protected if the company suffers losses, which encourages more people to invest.

(iii) Separate legal entity: A public limited company has a legal identity separate from its owners. It can own property, enter into contracts, and sue or be sued in its own name, which increases investor confidence.

(iv) Continuity of existence: The company continues to exist even if shareholders die, retire, or transfer their shares. This stability makes it attractive for long-term investment.

(v) Transferability of shares: Shares can be easily bought and sold on the stock exchange without affecting the operations of the company. This provides liquidity and encourages public participation in ownership.

(4c)
(i) Industrial unrest: Frequent strikes and disputes between unions and employers can disrupt economic activities.

(ii) Mismanagement and leadership issues: Some trade unions suffer from poor leadership and corruption, which weakens their effectiveness in protecting workers’ interests.
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(5a)
(i) Honesty: A good salesman must be truthful in describing products to customers. This builds trust and encourages repeat patronage, while dishonest behaviour can lead to loss of customers and damage to the firm’s reputation.

(ii) Good communication skills: A salesman should be able to clearly explain product features, prices, and benefits in a persuasive and understandable manner. Effective communication helps to convince customers and improve sales performance.

(iii) Courtesy and patience: A good salesman must be polite, respectful, and patient when dealing with different types of customers, including difficult ones. This creates a friendly buying atmosphere and increases customer satisfaction.

(5b)
(i) Price difference: Bournvita may be cheaper or more affordable at the time of purchase compared to Milo, influencing her decision to switch.

(ii) Availability of product: Milo might have been out of stock in the shop, making her choose Bournvita as an alternative.

(iii) Influence of promotion or advertising: She may have been influenced by promotional offers, discounts, or attractive advertisements for Bournvita that encouraged her to try it instead.
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(6a)
(i) Increases Customer Satisfaction: Follow-up enables the organisation to confirm that the customer is satisfied with the product or service received. It also gives customers the opportunity to report complaints or request assistance.

(ii) Builds Customer Loyalty: Regular follow-up strengthens the relationship between the organisation and its customers. Satisfied customers are more likely to make repeat purchases and recommend the business to others.

(iii) Encourages Future Sales: Through follow-up, the salesperson can inform customers about new products, special offers, or complementary products. This creates opportunities for repeat business and increased sales.

(6b)
(i) Be Honest and Truthful: Salespersons should provide accurate information about products and avoid false claims or misleading advertisements. Honesty builds customer trust and protects the organisation's reputation.

(ii) Follow Professional and Organisational Codes of Conduct: Salespersons should obey company policies and professional ethical standards when dealing with customers. This promotes fairness and responsible selling practices.

(iii) Respect Customers' Rights: Salespersons should treat customers fairly, avoid undue pressure, and respect their decisions. They should also honour warranties, guarantees, and after-sales service commitments.

(6c)
(i) Assumptive close.
(ii) Alternative-choice close.
(iii) Direct close.
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(7a)
(i) Economic factors: The income level, purchasing power, prices of goods, and availability of credit influence the buying decisions of consumers. People with higher incomes tend to buy more goods and services, while those with lower incomes are more selective in their purchases.

(ii) Social factors: Family, friends, social class, and reference groups affect consumer behaviour. Individuals often buy certain products because of the influence of the people and groups they associate with.

(iii) Psychological factors: Motivation, perception, attitudes, beliefs, and personality influence how consumers make purchasing decisions. A person's needs, preferences, and feelings about a product determine whether or not it will be purchased.

(7b)
A consumer is the person who actually uses or consumes a product or service for personal satisfaction, while a customer is the person who purchases the product or service. Thus, a customer buys the goods, whereas a consumer uses or consumes them. In some cases, the customer and the consumer may be the same person.

(7c)
(i) Primary social group

(ii) Secondary social group
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(8a)
(i) A neat and attractive appearance.

(ii) Polite and friendly greeting.

(iii) Thorough knowledge of the product.

(8b)
(i) High Price: Customers may object to buying a product if they consider the price too high compared to their budget or the prices of competing products. The salesperson must explain the product's value and benefits to justify the price.

(ii) Lack of Trust: Customers may resist the sales presentation if they doubt the honesty of the salesperson or the quality of the product. Building confidence through truthful information and demonstrations can help overcome this objection.

(iii) Lack of Need or Interest: A customer may feel that the product is unnecessary or does not solve any immediate problem. The salesperson should explain how the product can satisfy the customer's needs and provide useful benefits.

(8c)
(i) To Gain the Customer's Attention and Interest: The approach is intended to attract the customer's attention and arouse interest in the product. This encourages the customer to listen to the salesperson and learn more about the product.

(ii) To Establish Good Rapport: A good approach helps create a friendly and trusting relationship between the salesperson and the customer. This makes the customer feel comfortable and more willing to discuss their needs.

(iii) To Prepare the Customer for the Sales Presentation: The approach creates a favourable atmosphere for the sales interview. It prepares the customer to receive information about the product and increases the chances of making a successful sale.
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(9a)
(i) Immediate possession of goods: Hire purchase enables the buyer to obtain and use expensive goods immediately without waiting to save the full purchase price. This is especially useful for urgent needs such as vehicles or household equipment.

(ii) Payment in instalments: The cost of the item is spread over a period of time, making it easier for buyers with low or moderate income to afford valuable goods without financial pressure.

(iii) Use while paying: The hirer is allowed to use the goods while still completing payments, which means the item begins to provide value and utility before full ownership is transferred.

(iv) Improved standard of living: Hire purchase makes it possible for individuals who cannot pay lump sums to acquire durable consumer goods, thereby improving their comfort and quality of life.

(v) Flexible financial management: Since payment is broken into smaller amounts, it helps the buyer to plan income and expenditure more effectively without disrupting other financial responsibilities.

(9b)
(i) Late delivery of goods: Failure to deliver goods within the agreed time can amount to breach of contract.

(ii) Delivery of wrong goods: Supplying goods different from what was agreed upon violates the contract terms.

(iii) Non-payment by buyer: If the buyer fails to pay as agreed, it constitutes a breach.

(iv) Defective or substandard goods: Supplying goods that are not of the agreed quality leads to breach of contract.

(v) Failure to deliver goods at all: When the seller does not deliver the goods as agreed, it is a clear breach of contract.
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(10a)
A contract is a legally binding agreement between two or more parties in which each party undertakes to perform certain obligations that are enforceable by law.

(10b)
(i) Performance of the contract: A contract is terminated when all the parties involved have fully carried out their obligations according to the terms of the agreement. Once the agreed duties have been completed, the contract comes to an end.

(ii) Breach of contract: A contract may be terminated when one party fails or refuses to perform his obligations as agreed. The innocent party may then treat the contract as ended and seek legal remedies.

(iii) Frustration of contract: A contract is terminated when unforeseen events beyond the control of the parties make its performance impossible. Such events may include death, natural disasters, or changes in the law.

(10c)
(i) Attracts customers: Free gifts encourage new customers to try a product or service.

(ii) Increases sales: It motivates customers to buy more in order to qualify for promotional gifts.

(iii) Builds customer loyalty: It creates goodwill and encourages customers to continue patronizing the company.