What Is the Primary Difference Between an Agent and a Broker

question 130

Multiple Choice

What is the primary difference between an agent and a broker?

• A) An agent gets compensated based on commission while a broker generally charges fees for his services.
• B) A broker works only for a seller whereas an agent can represent a buyer or a seller.
• C) An agent represents a company on a permanent basis while a broker is employed temporarily.
• D) An agent has much more extensive knowledge about the products he deals with than a broker does.
• E) Brokers have long-term relationships with their customers while an agent's relationships are generally short-lived.

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Definitions:

Federal Statutes

Laws passed by the national government of a country that are applicable throughout the country.

Accounting Equation

The basic formula expressing that a company's total assets are equal to the sum of its liabilities plus equity capital.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the business.

Assets

Assets are economic resources controlled or owned by a business, intended to provide future benefits, such as cash, inventory, property, and equipment.