Differentiate between brokers and agents
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Brokers and agents both perform wholesaling functions. They facilitate buying and selling, on commission of 2 percent to 6 percent of the selling price and generally specialize by product line or customer type. Brokers bring buyers and sellers together and assist in negotiation; they are paid by the party hiring them—food brokers, real estate brokers, insurance brokers. Agents represent buyers or sellers on a more permanent basis. Most manufacturers' agents are small businesses with a few skilled salespeople: Selling agents have contractual authority to sell a manufacturer's entire output; purchasing agents make purchases for buyers and often receive, inspect, warehouse, and ship merchandise; commission merchants take physical possession of products and negotiate sales.
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Fleet Delivery Corporation is a public company with a market capitalization of less than $75 million. Fleet is poised to issue securities in a transaction that, under the Securities Act of 1933, is "exempt.". This enables Fleet to
a. reducethe compliance costs by not requiring an auditor report. b. buy and sell the securities without liability for "recaptures.". c. make forward-looking financial forecasts without liability. d. withhold inside information from accredited investors.
Discuss the strategies of emerging market firms in the face of increased competition in their markets.
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Which of the following categories does the majority of small businesses fall under?
A. Lifetime/Part-time firms B. Traditional small business C. High-performing small businesses D. High-growth ventures
On February 12, 2018, Nelson sells stock (basis $175,000) to his son Wayne for $150,000, the stock's fair market value on the date of the sale. On October 21, 2018, Wayne sells the stock to an unrelated party. In each of the following independent cases, determine the tax consequences of the transactions to Nelson and Wayne. a. Wayne sells the stock for $140,000. b. Wayne sells the stock for $180,000. c. Wayne sells the stock for $165,000.
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