Which of the Following Statements Provides the Most Accurate Distinction

question 107

Multiple Choice

Which of the following statements provides the most accurate distinction between an agent and a broker?

• A) Agents represent final buyers while brokers represent marketing intermediaries.
• B) Agents represent one manufacturer in a large sales area, while brokers represent several different manufacturers in a smaller area.
• C) Agents develop a long-term relationship with the people they represent, while brokers are usually hired on a temporary basis.
• D) Agents take title to the goods they help distribute, while brokers never assume ownership of the products they distribute.

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Definitions:

Income and Losses

A financial term encompassing the total earnings (income) and deductions (losses) affecting the net profitability of a business over a specific period.

Capital Balances

The amount of money that each partner has invested in a business, which can change over time with profits and losses.

Limited Liability Company

A business framework that combines sole proprietorship or partnership tax benefits with the limited liability protection typical of a corporation.

Limited Liability

A legal structure that limits an owner's loss to the amount invested, protecting personal assets from business debts.