Multiple Choice
Which of the following is characteristic of financial accounting?
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1. Introduction to Accounting
Types of Accounting
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Traditionally, a real estate broker is considered what type of agent for his or her principal?
A
A general agent
B
A special agent
C
An implied agent
D
A universal agent
Verified step by step guidance1
Understand the concept of agency in financial accounting and real estate. An agent is someone authorized to act on behalf of another party, known as the principal.
Learn the different types of agents: General agents handle a broad range of matters for the principal, special agents are limited to specific tasks, implied agents arise from actions rather than explicit agreements, and universal agents have broad authority to act on behalf of the principal.
Focus on the role of a real estate broker. A real estate broker is typically hired to perform a specific task, such as selling or buying property, which aligns with the definition of a special agent.
Compare the characteristics of a special agent with the other types of agents listed in the options. A special agent is limited to a specific transaction or task, unlike a general agent or universal agent who have broader responsibilities.
Conclude that the correct answer is 'A special agent' based on the broker's limited scope of authority in real estate transactions.
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