Which of the Following Best Describes Agents and Brokers

question 38

Multiple Choice

Which of the following best describes agents and brokers?

• A)They have a great deal of control and risk invested in the goods.
• B)They represent only manufacturers in sales situations.
• C)They generally are on an annual salary with the manufacturer.
• D)They do not take title to merchandise.

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Definitions:

Perpetual Inventory System

An inventory management approach where updates to inventory records are made immediately following each transaction.

Cost Of Goods Sold

The direct monetary charges for materials and labor involved in the creation of goods a business sells.

Credit Terms

The conditions under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and due date.

Invoice Price

The price indicated on an invoice, representing the amount to be paid by the buyer to the seller.