Which of the Following Statements Describes the Key Difference Between

question 269

Multiple Choice

Which of the following statements describes the key difference between merchant wholesalers and agents and brokers?

• A)Merchant wholesalers take title to merchandise and agents and brokers do not.
• B)Agents and brokers only deal with consumer channels.
• C)Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services.
• D)Merchant wholesalers don't perform all channel functions and agents and brokers do.

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Definitions:

Portfolio Income

Income from investments, including dividends, interest, and capital gains, excluding active business income.

Schedule E

A tax document for reporting supplemental income or loss, notably from real estate, S corporations, or partnerships.

Gross Income

Total income from all sources before deductions, allowances, or exemptions are factored in.

Schedule C

An IRS form used by sole proprietors to report income or loss from a business.