Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sherri 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

A merchant wholesaler is an organization that takes title to the goods it sells, which would not fit Sherri McRae's business model of avoiding the risk associated with high-fashion items. The other options (agent, broker, functional middleman, and commission merchant) do not require taking title to the goods and may be more suitable for her needs.

Sherri McRae Wants to Establish a Fashion Wholesaling Firm