North Carolina Post Licensing 303 Practice Exam

Image Description

Question: 1 / 400

What is a fundamental principle of compensation in a team setting within a brokerage?

Team members can divide commissions independently

All payments go through the BIC

In a brokerage team setting, the fundamental principle of compensation is that all payments go through the Broker-in-Charge (BIC). This approach ensures that the distribution of commissions is handled in accordance with the brokerage's policies and state regulations. By routing all compensation through the BIC, the brokerage can maintain compliance, oversee the financial transactions in a transparent manner, and effectively manage how commissions are allocated among team members.

This principle helps prevent disputes and mismanagement of funds, allowing the BIC to have complete visibility over the earnings of the team and provide necessary support and guidance. Additionally, it reinforces the brokerage's structure and ensures that commissions are handled in a consistent and fair manner across all team members.

Get further explanation with Examzify DeepDiveBeta

Teams must receive priority compensation

Agents can set their compensation rates

Next Question

Report this question

Download North Carolina Post Licensing 303 Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy