Asked by Sydnee Frakes on May 07, 2024
Verified
In a principal/agent relationship for contracts with customers, the pre-determined fee or commission for services is earned by the:
A) owner.
B) agent.
C) principal.
D) customer.
Principal/Agent
A relationship in which one party (the agent) is authorized to act on behalf of another party (the principal) in conducting transactions.
Commission
A fee paid to an agent or employee for facilitating a sale or service, typically a percentage of the sale price.
- Analyze revenue recognition in the context of principal/agent relationships.
Verified Answer
PG
Peyton GrahamMay 11, 2024
Final Answer :
B
Explanation :
In a principal/agent relationship, the agent is the one who provides services to the customer on behalf of the principal. The pre-determined fee or commission for those services is earned by the agent.
Learning Objectives
- Analyze revenue recognition in the context of principal/agent relationships.