Which of the following statements about auction companies is true?

The statement that none can operate without a business license is true, as all auction companies must adhere to local and state regulations that typically require a business license to legally conduct their operations. This is important because a business license ensures that the auction company is operating within the law and meeting local business requirements.

In the context of auction operations, obtaining a business license is often a precursor to further licensing requirements, such as the need for an auctioneer's license. This framework helps to establish accountability and professionalism within the industry, promoting fair trading practices.

While it’s true that licensed auctioneers are typically required to oversee the auction process, there are certain exceptions and nuances based on the specifics of what is being auctioned. For example, some states may exempt auctions that involve specific types of items or services. However, regardless of the need for an auctioneer’s license, the necessity for a business license remains a constant requirement to ensure compliance with established business practices.

The idea that companies can function without legal training is misleading. While a business might operate in practice without specialized legal training, the complexities of auction law and regulations usually necessitate some level of legal knowledge to minimize risks and ensure compliance. Additionally, claiming that companies focused solely on real property are exempt from licensing