Final answer:
An employee with high discretion typically increases the opportunity to close a sale, as they have more authority to make decisions that could be favorable to the customer. The ability to adapt quickly and offer terms that are closely aligned with what the customer is looking for often results in a more efficient and successful sales process. The correct option is 3.
Step-by-step explanation:
When an employee has a high level of discretion, it typically means they have the authority to make significant decisions within the company. This can affect the ability to close a sale in several ways.
If an employee has the flexibility to adjust terms, offer discounts, or make decisions quickly without seeking approval, this can often lead to an increase in the opportunity to close a sale because the sales process can be more responsive and adaptive to the needs and desires of the customer.
Companies sometimes need to make difficult decisions such as whether to expand or reduce production, set the price they choose, open new factories or sales facilities or close them, hire workers or to lay them off, and to start selling new products or stop selling existing ones.
Factors like changes in consumer income levels, product price increases, variations in the number of buyers, and availability of related products can influence these decisions.
Considering profitability and covering variable costs, a firm may decide to shut down immediately if revenue is not sufficient to cover increased variable costs or to remain open if revenue covers these costs and reduces losses. The correct option is 3.