Under the "procuring cause" rule, when the agent is the primary factor in a purchase, the agent ________.
A. is not entitled to compensation if the principal completes the purchase
B. may be entitled to compensation only if he completes the sale
C. is not entitled to compensation after termination of the agency relationship
D. may be entitled to a commission regardless of who eventually completes the sale
Answer: D
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Which of the following does not represent an acceptable method of transferring receivables to increase cash flow?
a. With recourse b. Without recourse c. Factoring d. Tax deferred Method
Barter Company borrows $20,000 for one year a 9% interest, but must maintain a $1,600 compensating balance. The effective rate of interest on this loan is
a. 9.0%. b. 17.0%. c. 9.8%. d. 8.0%.
Sable Company is seeking a short-term loan from its local bank. The banker needs assurance that the company will be able to repay the loan. Describe three financial ratios the banker should consider including in the loan approval process. What information does each of your selected ratios provide?
What will be an ideal response?
A principal-agent contract
a. must be in writing if it involves the sale of real estate. b. must be in writing if the relationship is to last for less than one year. c. never needs to be in writing. d. must always be in writing.