Your uncle, who has a second home in Bondi Beach, Sydney, is planning to sell it in the next few weeks. You are interested in buying this beachside property, so your agent negotiates a price for the house with your uncle's agent. This transaction is an example of:

Question

Quizplus · Accepted Answer

The transaction between the buyer and uncle's agent is an example of an arm's-length transaction, which means that both parties act independently to negotiate a fair price. This is one of the assumptions of accounting and business that ensures fair and unbiased transactions. The other options (A, C, D) do not apply to this transaction.

Your Uncle, Who Has a Second Home in Bondi Beach