Chapter 15 MiddleMen Flashcards
Define middlemen.
Ans.
The term “Middlemen” includes all firms and individuals who directly or indirectly participate in buying and selling of goods from the producer to final consumer.
0.2
State the kinds of middlemen.
Ans. There are two kinds of middlemen:
(i) Merchant middleman (ii) Agent middlemen
Q3
Ans,
Define agent.
The persons appointed by businessmen to represent. them or to act on their behalf in business matters.
Q.4
Ans,
Define principal.
The person for whom such act is done or who is so represented is called the Principal.
What types of agents help in buying and selling.
(1)
Brokers
ii) Factors (ili) Commission agent (iv) Delcredere agent
(v) Auctioneer
Q.6
List out the types of agents who help in the transportation.
Ans.
(1)
Exporting agent (ii) Importing agents i Forwarding agent (iv) Clearing agent (v). Warehouse keeper
Q.7
Define the agents who help in the purchase and sale of shares.
Ans.
(1 Broker:
(ii)
Broker is an agent who buys and sells the shares of different companies on the behalf of his principal.
Underwriters:
These are the agents who enter into agreement with the promoters of a newly started company to take up the remaining shares of the new company which have not been taken up by the public.
Q.8 Define the factor.
Ans. A factor is an agent who sells goods after taking them in his possession or under his control on behalf of his principal.
ANCIPLES OF COMMERCE
State any three characteristics of a factor.
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(i)
principal.
He is given the possession of goods by the
agents
(ii)
He sells the goods in his own name.
(i) He receives payment from the purchaser.
Define the broker.
A broker is an agent who represents a buyer or a seller in negotiating a purchase or sale without physically handling the goods involved. He is only concerned with making bargains and contacts between other parties.
Q,11 State any three characteristics of a broker.
AnS.
(1)
He is not given the possession of goods by the principal.
in the pures and si
(ii)
He simply conducts negotiations for sale of goods.
The actual sale is made in the name of principal.
(ili) He cannot enter into a trade agreement.
Q.12 Define commission agent.
on the behalf d tAns.
Commission agent is an agent who receives orders from buyers by showing samples. Commission agent cannot transact the goods in his own name.
13 State any three characteristics of a commission agent.
of the new da
ANS,
(i)
Commission agents are appointed for the sale and purchase of goods.
(ii)
Sometimes, the principal transfers the possession
ather sati
of goods to commission agent.
(i A commission agent cannot transact the goods with own name.
Define the kinds of commission agents.
Ans.
Travelling Agents:
Sometimes wholesalers appoint a number of agents who go from place to place, show catalogues, price lists etc to wholesalers and retailers, book orders and forward them to their principals who execute them. Such agents are called Travelling Agents.
Common Agents:
Sometimes wholesale traders and manufacturers appoint certain shop-keepers in different parts of the country as their selling agents. The principal supplies the goods to his agents according to their requirements.
They sell the goods and receive commission as their remuneration.
Sole / Spécial Agents:
Sole agent works only for a particular trader or institution.
He is appointed for a specific area. The advantage of Sole Agent is that the principal agrees not to supply the goods to any one else in that area.
Q.15
Define delcerdere agent.
Ans.
A delcredere agent is a selling agent, who consideration of high commission undertakes to
indemnify the principal from bad debts which generally occur due to non-payment of prices of the goods sold to the customers on credit
Q.16
Ans.
Define forwarding agent.
He is appointed when goods are exported to the foreign countries. His principal function is to receive the goods at the docks, to arrange freight, to perform custom formalities, to process bills of lading and to insure the delivery of goods.
Define clearing agent.
Ans. A clearing agent is appointed when goods are imported. he performs the custom formalities, takes delivery of the goods from the steamship companies and serves the goods to the importer according to his instructions.
Q.18 Define agency.
Ans.
The relationship exists between an agent and a principal is known as agency.
