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

question 27

Multiple Choice

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

• A)the agent may be entitled to a commission regardless of who eventually completes the sale.
• B)the agent is not entitled to compensation after termination of the agency relationship.
• C)the agent is not entitled to compensation because the agent did not actually "seal the deal."
• D)the agent is entitled to compensation only if he completes the sale even after termination of the agency relationship.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and a share in the company's profitability through dividends.

Acquisition

The process of gaining control or ownership of another company or its assets, often through purchase or merger.

Net Assets

The total assets of an organization minus its total liabilities, representing the owners' or shareholders' equity.

Credit Balance

A situation where the amount of credits in an account exceeds the debits, often indicating money owed by the institution to the account holder.