What Is the Primary Difference Between an Agent and a Broker

question 130

Multiple Choice

What is the primary difference between an agent and a broker?

• A) An agent gets compensated based on commission while a broker generally charges fees for his services.
• B) A broker works only for a seller whereas an agent can represent a buyer or a seller.
• C) An agent represents a company on a permanent basis while a broker is employed temporarily.
• D) An agent has much more extensive knowledge about the products he deals with than a broker does.
• E) Brokers have long-term relationships with their customers while an agent's relationships are generally short-lived.

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Definitions:

Buyer

An individual or entity that acquires goods or services in exchange for payment.

Seller

An entity or individual that offers goods or services in exchange for payment, playing a crucial role in any market transaction.

Interest Rate Forward Contracts

Financial derivatives that lock in the future interest rate to be paid or received on a certain principal amount.

Financial Distress Costs

Expenses or losses incurred by a company when it is struggling to meet its financial obligations.