Question

Joanna, a member, is a sole proprietor that specializes in data processing system design and installation. To facilitate her work and provide additional service to her clients, Joanna purchases various products for sale to her clients. Joanna takes title to the products and assumes all of the risks of ownership. The profit on the sale of these products to her clients is: a) a referral fee b) a commission c) not allowed d) None of the above

Answer 1

Answer: d) None of the above

Step-by-step explanation:

The profit on the sale is not a referral fee as Joanna did not facilitate a transaction between her clients and the people she bought the products for.

It is not a commission either because it is not a percentage of the products price earned as an incentive or extra fee for selling the products.

Her selling these products is allowed.

The answer is therefore None of the Above.