Martin, who wants to sell his house, authorizes his concierge, William, to find a potential buyer and finalize a deal above a stipulated price. William contracts Chris, a real estate broker, and intends him to only find a potential buyer and send him or her over to William for the sale. Martin then contracts ReNowait Goodhouses, a home improvement company, to renovate the house. ReNowait completes its work and Martin pays the company. Chris then searches for a suitable buyer and finds one in George. George buys the house and Chris is paid for his services. In this scenario, what type of commercial relationship exists between Martin and William?
A. an employer-employee relationship
B. an agent-agent relationship
C. an agent-independent contractor relationship
D. a principal-agent relationship
Answer: D
You might also like to view...
Which one of the following statements is true?
a. When a company uses a subsidiary ledger, the balance in the control account, Accounts Receivable, shows only the amount the company expects to collect from the accounts receivable, net of any expected uncollectible accounts. b. An accounts receivable subsidiary ledger represents amounts due to vendors and suppliers. c. The balance in the control account, Accounts Receivable, should be equal to the sum of the balances in the subsidiary ledger for accounts receivable. d. A subsidiary ledger takes the place of the control account for some companies.
Which of the following does NOT create sales through presentations and probably never attempts to close a sale?
A. Account representative B. Sales engineer C. Order-taker D. Detail salesperson E. Industrial products salesperson
Which of the following refers to the unstated standard operating procedures or ways of doing things?
A. climate B. diversity C. culture D. anthropology
Under the direct method, cash paid to suppliers can be computed as cost of goods sold for the period
a. plus an increase in inventory and minus an increase in accounts payable. b. plus a decrease in inventory and minus an increase in accounts payable. c. minus an increase in inventory and plus an increase in accounts payable. d. minus a decrease in inventory and plus an increase in accounts payable. e. None of these answer choices is correct.