Which of the Following Statements Regarding Independent Representatives Is False

question 92

Multiple Choice

Which of the following statements regarding independent representatives is false?

• A) They normally do not take title to the products they sell.
• B) Independent representatives are compensated on a straight salary basis.
• C) Manufacturers typically develop contractual agreements with several rep organizations.
• D) They are independent sales organizations that sell complementary, but noncompeting, products from different manufacturers.
• E) Each rep organization is assigned a geographical territory.

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Definitions:

Residual Value

The estimated value that an asset is expected to have at the end of its useful life, after depreciation has been taken into account.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Average Rate

The mean price or value of a commodity or service over a given period or in a given market.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.