Which of the Following Statements Is (Are) TRUE of Selling

question 2

Multiple Choice

Which of the following statements is (are) TRUE of selling agents in residential real estate transactions?

• A) Because agents are paid on commission, there is no principal-agent problem.
• B) Because agents are paid on commission, they have an incentive to sell quickly, without waiting for slightly higher offers.
• C) If an agent sells an owner's home for an additional $20,000, the agent stands to gain more than the owner.
• D) Owners know more than agents about the state of the real estate market and the value of comparable homes.

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Definitions:

Combining Forms

In language, particularly in medical terminology, morphemes that are combined with other words or morphemes to form new words.

Word Root

The base part of a word from which other words can be formed, often derived from Latin or Greek.

Combining Form

In language, a morpheme that combines with other morphemes to form a word, especially in the context of scientific and medical terminology.

Weakness

A reduction in the strength or efficacy of something, such as physical power, structural integrity, or an argument.