Which of the Following Statements About Merchandise Brokers Is True

question 148

Multiple Choice

Which of the following statements about merchandise brokers is true?

• A) Brokers are paid salaries by the manufacturers for whom they work.
• B) Brokers never take title to the merchandise they sell.
• C) Brokers work for manufacturer-owned intermediaries.
• D) Brokers typically represent sellers on an ongoing basis.
• E) Brokers work in industries with only a few, very large buyers and sellers.

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Definitions:

Delivery Term

Refers to the conditions in a sales contract that outline the specifics of how and when the goods will be delivered to the buyer.

CFR

An abbreviation for "Code of Federal Regulations," which is a collection of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government.

FOB

Free on Board, a shipping term used to indicate whether the seller or buyer is responsible for goods damaged or destroyed during shipping.

Excess Capacity

A situation where a business produces less than it is actually capable of because there is not enough demand for its product or service.