Under the "Procuring Cause" Rule, When the Agent Is the Primary

question 13

Multiple Choice

Under the "procuring cause" rule, when the agent is the primary factor in a purchase, the agent _____.

• A) may be entitled to a commission regardless of who eventually completes the sale
• B) is not entitled to compensation after termination of the agency relationship
• C) is not entitled to compensation if the principal completes the purchase
• D) may be entitled to compensation only if he completes the sale

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Definitions:

Periodic Depreciation Charge

A non-cash expense that allocates the cost of a tangible asset over its useful life on a regular basis.

Acquisition Fees

Fees associated with the process of acquiring another company, such as legal, consulting, and accounting fees.

Cost Basis

The original value of an asset for tax purposes, usually the purchase price, which is used to calculate capital gains or losses.

Brokerage Commission

Brokerage Commission is the fee charged by a brokerage firm for facilitating transactions between buyers and sellers in financial markets.