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:

Value Per Share

The amount of money that would be received for each share of stock if all of a company’s assets were sold at their exact book value.

Incremental Value

The additional value created by undertaking a particular action, project, or investment, compared to not doing so.

Shares Outstanding

The total number of shares of a company that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Incremental Value

The additional or extra value created by undertaking a certain action or decision, compared to doing nothing or choosing an alternative.