A Feature Which Distinguishes Commercial Agents from Distributors and Nonagents

question 12

Multiple Choice

A feature which distinguishes commercial agents from distributors and nonagents is that:

• A)commercial agents generally maintain their own inventory of goods unlike distributors.
• B)commercial agents are usually compensated through a straight salary when a sale is completed.
• C)commercial agents always bear the financial risk of nonpayment by the purchaser.
• D)commercial agents often possess the authority to contract on behalf of their principals.

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Definitions:

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, often the principal plus any final interest payment.

Owner Relationship

The legal and operational connections and responsibilities between the owner(s) and their business entity.

Short-Term Investments

Investments that are typically held for one year or less, intended for quick gains or temporary cash investment.

Sinking Funds

A type of savings account or fund that is set up to repay debt or an outstanding loan, making periodic payments into the fund for this purpose.