Broker bill has several agents in his employ. agent smith, an "s-corporation" himself, has his commission checks written out to his "s-corporation." because of this, broker bill is:

managing broker over Agent Smith

Explanation:

a managing broker is a person who held the responsibility over the actions of another broker office or agency that act on his/her behalf.

All the profit that is made by managed entity (in this context agent smith) will have to goes to managing broker first and the managing broker will share the profit on a private term with Agent Smith.

In return, the managing broker will have to ensure that all of the agents that he/she has under disposal have to follow the compliance rule that is made by the government.

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