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Principle and agent

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Principle and agent

  • This topic has 8 replies, 2 voices, and was last updated 6 years ago by Stephen Widberg.
Viewing 9 posts - 1 through 9 (of 9 total)
  • Author
    Posts
  • December 12, 2019 at 7:16 am #555709
    aadil1234
    Member
    • Topics: 75
    • Replies: 104
    • ☆☆

    Sir If Co A. has created a video game and the video game is sold through Co B. The Co B. has the distribution rights and is also responsible of pricing the goods, Marketing the goods.

    The gamers after buying the games pay through credit credit and Co B receive the payment and Remit the amount to Co. A after deducting a fee.

    So in this who will be principle and who will be agent?

    December 12, 2019 at 8:33 am #555715
    aadil1234
    Member
    • Topics: 75
    • Replies: 104
    • ☆☆

    Sir If Co A. has created a video game and the video game is sold through Co B. The Co B. has the distribution rights and is also responsible of pricing the goods, Marketing the goods.

    The gamers after buying the games pay through credit credit and Co A receive the payment and Remit the amount to Co. B after deducting a fee.

    So in this who will be principle and who will be agent?

    Note: The Q that I first posted was incorrect, this Q is correct so the reply will be given on this Q not the above Q which I first posted.

    December 12, 2019 at 4:31 pm #555798
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3441
    • ☆☆☆☆☆

    I would see B as the principal

    If I write an article for BPP and they sell, and I end up with commission, I think that BPP would be the principal

    December 12, 2019 at 4:58 pm #555801
    aadil1234
    Member
    • Topics: 75
    • Replies: 104
    • ☆☆

    And who will be the agent sir?

    December 12, 2019 at 6:48 pm #555805
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3441
    • ☆☆☆☆☆

    I think that I’m the agent

    December 12, 2019 at 6:56 pm #555806
    aadil1234
    Member
    • Topics: 75
    • Replies: 104
    • ☆☆

    So in Co. A and Co B case, Co A. will be the agent?

    December 13, 2019 at 1:42 pm #555856
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3441
    • ☆☆☆☆☆

    My gut feeling is that A is agent

    December 13, 2019 at 2:52 pm #555863
    aadil1234
    Member
    • Topics: 75
    • Replies: 104
    • ☆☆

    Thank you sir 🙂

    December 15, 2019 at 6:09 pm #555962
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3441
    • ☆☆☆☆☆

    My pleasure

  • Author
    Posts
Viewing 9 posts - 1 through 9 (of 9 total)
  • The topic ‘Principle and agent’ is closed to new replies.

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