Crafty Covers Inc.(CCI)sells some of its products like cellphone covers,sling bags,and wallets,by storing,displaying,and selling them in gift shops,supermarkets,and drug stores.This implies that CCI is a
A)limited-function merchant wholesaler.
B)merchant wholesaler.
C)rack jobber.
D)drop shipper.

Question

Quizplus · Accepted Answer

Rack jobbers are distributors who handle non-food lines and sell their merchandise to retailers not through traditional wholesale channels but by maintaining inventory in the retail location. The description of Crafty Covers Inc. fits this model, as they store, display, and sell their products directly in retail outlets like gift shops, supermarkets, and drug stores.