Page 50 - SBR Integrated Workbook STUDENT S18-J19
P. 50
Chapter 4
Example 1
Principal or agent
Deals4U operates a website that enables customers to purchase computer
equipment from a range of suppliers. The suppliers deliver the goods directly
to the customers. When a good is purchased via the website, Deals4U earns
a commission at a rate of 8% of the sales price. Sales prices are set by the
supplier. Customers pay when they place the order. All orders are non-
refundable.
Is Deals4U an agent or a principal?
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