A Unique Broker That Acts in Many Ways Like a Manufacturer's

question 24

Multiple Choice

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

• A) receive a commission for their services.
• B) are paid a flat fee for each time the shelves are stocked.
• C) are paid by both the buyer and seller separately depending upon the size of the order.
• D) are paid a commission by the buyer and a bonus by the seller.
• E) are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.

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Definitions:

Organization Design

The process of structuring an organization's roles, responsibilities, and relationships to effectively achieve its goals.

Strategic Choice

Decision-making processes that consider the long-term goals and direction of an organization.

Authority Relationships

The structured interactions and power dynamics between individuals in positions of command and those who report to them within an organization.

Raw Materials

Basic substance in its natural, modified, or semi-processed state, used as an input to a production process for subsequent modification or transformation into a finished good.