Which of the Following Statements Is True About Agency Commissions

question 91

Multiple Choice

Which of the following statements is true about agency commissions?

• A)Some leading agencies now receive average commissions of 8 to 10 percent.
• B)Nearly all of the leading agencies still earn a 15 percent commission.
• C)Most agencies are earning more of their income from fixed commissions as clients expand their IMC programs to include other forms of promotion.
• D)Most agencies are unwilling to negotiate their commission rates.
• E)Leading agencies often get 20 percent commissions.

---

Definitions:

Reasonable Person Standard

A legal standard that measures behavior against how a hypothetical, reasonable and prudent person would have acted under similar circumstances.

Mental Deficiency

A term historically used to describe a range of intellectual disabilities, but now often considered outdated and insensitive.

Infancy

The period in human development from birth to toddlerhood, also used legally to refer to individuals under a certain age, typically 18 or 21, who are considered unable to enter into contracts.

Business Visitor

An individual visiting a business site for purposes related to their own or the business's interests, given a certain degree of protection under the law.