Independent Firms or Individuals Whose Principal Function Is to Bring

question 113

Multiple Choice

Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales are referred to as

• A) manufacturers' agents.
• B) brokers
• C) selling agents.
• D) manufacturer's branches.
• E) manufacturer's sales offices.

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Definitions:

External Equity

Funds raised through the sale of company shares in the capital markets, as opposed to internal financing through retained earnings.

Retaining Earnings

The portion of net income that is not distributed to shareholders but is kept by the company to be reinvested in its core business or to pay debt.

Flotation Cost

The total costs associated with issuing new securities, including but not limited to underwriting, legal, and registration fees.

Equity Capital

Funds raised by a company through the sale of common or preferred stock, representing ownership interest in the company.