Question

Which of the following is true of agent middlemen?

A) They take title to the merchandise.
B) By using agents, the manufacturer maintains the right to establish policy guidelines.
C) They are less controllable by manufacturers than are merchant middlemen.
D) They are frequently criticized for not representing the best interests of a manufacturer.
E) They assume the risks of trading.

Answer 1

Agent middlemen assume the risks of trading.

Step-by-step explanation:

Of the options given, option E) They assume the risks of trading is true of agent middlemen. Agent middlemen are individuals or firms that represent manufacturers by promoting and selling their products, but they do not take title to the merchandise. Rather, they facilitate the trade process and assume the risks associated with selling the products on behalf of the manufacturer. This arrangement allows manufacturers to have more control over policy guidelines and maintain a closer relationship with the market.