Identify the Following Parties and Relationships

question 47

Essay

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.

---

Definitions:

Protection Sellers

Protection sellers in a financial context typically engage in credit derivatives markets, selling credit protection to hedge against the risk of default on underlying credit assets.

Protection Buyers

In derivatives trading, individuals or entities that purchase credit protection to hedge against potential losses from a credit event like default.

Convertible Securities

Bonds or preferred stocks that can be exchanged for (converted into) common stock, under specific terms, at the option of the holder. Unlike the exercise of warrants, conversion of a convertible security does not provide additional capital to the issuer.

Preferred Stocks

A type of stock that gives holders preference over common stockholders in terms of dividends and asset liquidation.