An Agent Who Arranges a Transaction Between a Buyer and a Seller

question 43

Multiple Choice

An agent who arranges a transaction between a buyer and a seller of equity securities is called a:

• A) broker.
• B) floor trader.
• C) capitalist.
• D) principal.
• E) dealer.

Recognize the benefits of trade and specialization.

Differentiate between comparative and absolute advantage.

Grasp the role of opportunity cost in economic decisions.

Explain the characteristics and benefits of a market economy.

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Definitions:

Proprietary Fund

A type of governmental accounting fund used to account for activities that are similar to those found in the private sector, where the intent is to recover costs through user charges.

Financial Statement

Documented records summarizing a business's financial condition and operations over a period.

Statement of Net Position

A financial statement detailing an entity's assets, liabilities, and net position at a particular point in time, providing a snapshot of financial health.

Tax Abatement

A reduction or elimination of taxes granted by governments to encourage certain activities, such as investments in property development.