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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Principle and agent
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?
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.
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
And who will be the agent sir?
I think that I’m the agent
So in Co. A and Co B case, Co A. will be the agent?
My gut feeling is that A is agent
Thank you sir 🙂
My pleasure
