Jim Was Engaged by Nick as His Agent to Purchase

question 29

True/False

Jim was engaged by Nick as his agent to purchase a parcel of land for him. Jim approached the owner of the land and offered to sell the land for him as his agent if he would pay a commission on the sale. The owner agreed, and the sale was arranged with Nick. Without disclosing details of the transaction, Jim collected a commission on the sale from both Nick and the landowner. The owner of the property, who also thought that Jim was his agent, would be entitled to recover the commission he paid to Jim.

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Definitions:

Preferred Shareholders

Investors who own preferred shares in a company, usually entitled to dividends before common shareholders and with certain other financial rights.

Market Price

The current price at which an asset or service can be bought or sold in a market.

No-Par

Refers to stock issued without a par value, meaning it has not been assigned a nominal face value.

Market Value

The ongoing rate at which one can buy or sell an asset or service.