How Does a Distributor Differ from an Agent

question 60

Multiple Choice

How does a distributor differ from an agent?

• A) The agent pays royalties to the multinational enterprise.
• B) The distributorship shares profits with the multinational enterprise.
• C) The distributor takes title to the merchandise it receives and thereby bears many of the risks connected with commercial sales.
• D) The distributor has the power to enter into contracts on the principal's behalf,but the agent does not.

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Definitions:

Cotton Fiber

A natural textile fiber obtained from the seed of the cotton plant, widely used in the manufacture of soft and breathable fabrics.

Auto Lift

Equipment used in automotive repair shops and garages to elevate vehicles for maintenance and repair work.

Day-To-Day Operations

The routine activities that are conducted in the daily functioning of an organization or business.

Ancillary Services

Supplementary services provided by companies that are not primary to their main business but enhance or support the overall consumer experience.