A brokerage business model earns profits through:
A) advertising revenue.
B) selling low cost goods at high markups.
C) charging a commission on each transaction.
D) getting reimbursed for a portion of its overhead costs by members.
E) working exclusively for large distributors.

Question

Quizplus · Accepted Answer

A brokerage business model typically earns profits by charging a commission on each transaction. This means that the business takes a percentage of the value of each transaction that takes place through the brokerage. This is the primary source of revenue for most brokerage firms, and can be a lucrative business model if the firm handles a large volume of transactions. Advertising revenue, selling low cost goods at high markups, getting reimbursed for a portion of its overhead costs by members, and working exclusively for large distributors are not typically associated with brokerage business models.

A Brokerage Business Model Earns Profits Through