Shelly McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Shelly does not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out?

Question

Quizplus · Accepted Answer

Merchant wholesalers buy and take title to goods and sell them to retailers or other businesses. Since Shelly does not want to have title to the garments due to the risk of obsolescence, she would not choose to establish a merchant wholesaling firm.

Shelly McRae Wants to Establish a Fashion Wholesaling Firm