A feature which distinguishes commercial agents from distributors and nonagents is that commercial agents:
A) generally maintain their own inventory of goods unlike distributors.
B) are usually compensated through a straight salary when a sale is completed.
C) always bear the financial risk of nonpayment by the purchaser.
D) often possess the authority to contract on behalf of their principals.

Question

Quizplus · Accepted Answer

There are several characteristics that commonly distinguish commercial agents from distributors and other nonagents. First, agents generally do not maintain their own inventory of goods. Second, agents usually are compensated through the payment of a commission when a sale is completed. Third, agents seldom bear the financial risk of nonpayment by the purchaser. Fourth, agents often possess the authority to contract on behalf of their principals.

A Feature Which Distinguishes Commercial Agents from Distributors and Nonagents