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:

Derivatives

Financial instruments whose value is derived from the value of one or more underlying assets or indices.

Hedges

Financial strategies or instruments used to offset potential losses or gains in another investment or position.

Market Rate

The prevailing interest rate or cost of borrowing in the financial markets, or the standard price in the marketplace for a certain good or service.

Historical Cost Accounting

An accounting method in which assets and liabilities are recorded at their values at the time of purchase or acquisition, without considering inflation.