Which of the following is not an indicator that a company may be an agent?
A) The company provides goods or services to customers.
B) The company does not have inventory risk.
C) The company's consideration is in the form of a commission.
D) The company does not have discretion in establishing prices for goods and services.

Question

Quizplus · Accepted Answer

A company providing goods or services to customers is not an exclusive indicator of it being an agent. Agents typically earn commissions for facilitating transactions between two parties, do not take inventory risk, and often do not have discretion in setting prices. Providing goods or services directly could indicate a principal rather than an agent relationship.

Which of the Following Is Not an Indicator That a Company