Comstock Coal Distributors does not mine coal itself. In fact, the firm does not even store or handle coal. Instead, Comstock solicits orders for low sulfur coal from other firms, then purchases the required amount from suppliers and directs them to ship the coal to its customers. Comstock is a:
A) drop shipper.
B) resource delivery facilitator.
C) cash-and-carry wholesaler.
D) limited distribution broker.

Question

Quizplus · Accepted Answer

Comstock Coal Distributors is essentially acting as a middleman between the coal suppliers and customers, without ever physically handling the product themselves. This is the exact definition of a drop shipper, who coordinates the delivery of products from the supplier directly to the customer without taking ownership of the goods.

Comstock Coal Distributors Does Not Mine Coal Itself