Theory question 107
Wholesale TradeCommerce 2 (theory)
(a) Distinguish between a broker and a factor.
(b) State three duties of an employer to an employee.
(c) State four duties of an employee to an employer
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(a) A broker brings buyers and sellers together but does not hold the goods; he buys/sells in the principal's name and earns brokerage. A factor is given possession of the goods, may sell in his own name, may give credit and fix prices, and earns a factor's commission.
(b) Any three: pay agreed wages promptly; provide safe working conditions; indemnify employee for losses in the course of work; give leave/holidays; provide welfare and training; treat employee fairly and give notice before termination.
(c) Any four: obey lawful instructions; work diligently and with skill; be honest and loyal; keep business secrets; take care of the employer's property; be punctual; account for money and property received.
The key difference in (a) is possession of the goods.