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Identify the following parties and relationships.
a. Patricia hires Andrew, an attorney, to negotiate a contract to purchase some property. She agrees to pay him $75 an hour for his services, and he agrees to use his own office and secretarial staff to negotiate and draft the agreement.
b. Mel owns a retail store. He hires Sarah to work for him as a clerk in the home furnishings department.
c. Carl is the general contractor for the construction of a large office complex. Carl hires Ed's Electric Company to do all of the wiring for the building.
d. Incellmed Corporation hires Bob as an outside salesman and instructs him to call on customers in a specified territory and to solicit orders for their products.
e. Marlin, who is the owner of Marlin's Department Store, hires Melissa as the general manager of his new branch in the Hillridge Mall.
Merchandise Inventory Account
An account that tracks the cost of goods available for sale to customers during an accounting period.
Service Businesses
Companies that earn revenue primarily through providing intangible products, such as services or expertise, rather than selling physical goods.
Merchandising Business
A type of business that purchases products from other businesses and sells them to customers.
FOB Shipping Point
A term used in shipping contracts to indicate that the buyer is responsible for the goods and their transportation costs as soon as they leave the seller's premises.
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