Which of the Following Statements About Merchandise Brokers Is True

question 84

Multiple Choice

Which of the following statements about merchandise brokers is true?

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

---

Definitions:

Trading Cost

Expenses incurred when buying or selling securities, including commissions, spreads, and slippage.

Weekly Cash Flows

The inflow and outflow of cash within a business measured on a weekly basis, crucial for understanding liquidity and operational efficiency.

Miller-Orr Model

A financial model used to manage cash balances, determining when and how much to transfer between interest-bearing investments and cash.

Initial Cash Balance

The amount of cash available in a company or individual's account at the start of a period.