Which of the Following Would Be the Best Example of a Broker

question 304

Multiple Choice

Which of the following would be the best example of a broker?

• A) Woody's Lumber Supply does not actually store, handle, or deliver lumber, but rather solicits orders from retail hardware and home improvement stores, takes title to the lumber, then arranges for it to be shipped directly from sawmills to the retail stores.
• B) Dennis McGowan helps buyers and sellers of used heavy construction equipment negotiate the terms and conditions of their transactions, but does not actually take title to any of the equipment, nor does he develop long-term relationships with the buyers or sellers.
• C) Chipper Sheid is not an employee of Tee Time Golf Clubs, but he solicits sales for their products at golf and sporting goods stores in a fairly large sales territory.
• D) Hal Harrison is employed by a vacuum cleaner company, and goes door-to-door selling products produced by his company.

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service.

Price Floor

A minimum price set by the government, below which the sale of a product is not allowed.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, aimed at protecting consumers from high prices.

Price Floor

A government-imposed minimum price below which a certain good or service cannot be sold, often set to protect producers or sectors.