Which
of
the
following
entities
would
be
considered
a
principal?
A
broker
that
sells real
estate
on
behalf
of
a
client
A
business
that
sells
its
goods
on an
online
marketplace.
A firm
with
multiple
clients
and
whose
consideration
is
in
the
form
of
a
commission.
Reason:
A
principal
recognizes
revenue
for
the
gross
amount
paid
by
the
customer,
an
agent
reports
revenue
only
for
the
amount
of
commission.
°
n
artist
whose
works
are
sold
n
Gallery
o
behalfof
the
ats,with
the
gallry
keeping
a
porton
ofte
sellng
price.
]
Correct
Answer
A
business
that
sells
its
goods
on
an
online
marketplace.
An
artist
whose
works
are
sold
in
a
gallery
on
behalf
of
the
artist,
with
the
gallery
keeping
a
portion
of
the
seling
price.
Which
of
these
factors
is
the
distinguishing
characteristic
of
a
sale
of
intellectual
property,
as
opposed
to
a
license?
Under
a
sale,
the
customer
receives
a
warranty.
Under
a
sale,
payment
is
due
immediately
rather
than over
time
Under
a
sale,
the
customer's
use
of
the
intellectual
property
s
for
a
certain
period
of
time.
©
Correct
Answer
Under
a
sale,
the
customer's
use
of
the
intellectual
property
is
not
limite.
