What role does a broker play compared to an agent in the real estate industry?

In the real estate industry, a broker plays a critical role in overseeing the activities of agents and managing real estate operations. The correct choice emphasizes that brokers have the authority to supervise multiple agents, which includes training, providing guidance, and ensuring compliance with laws and regulations.

Brokers are licensed to operate their own real estate businesses and have the necessary qualifications that often require additional education and experience beyond what is required of agents. This added level of responsibility enables them to handle complex transactions and to create policies and procedures for their offices.

In contrast, agents typically work under the umbrella of a broker and are not able to operate independently in a legal sense, as they must adhere to the guidelines set forth by the broker. The other choices either misrepresent the distinction between the roles or limit the scope of a broker's duties, which underscores the importance of understanding the hierarchical structure in real estate practices.