Newton Coal Supply takes possession of coal from the local mining companies. However, it does not store a single ounce of coal on its premises. Instead, it simply arranges for the coal to be shipped directly from the mining company to its customers. This type of arrangement suggests that Newton Coal Supply is a _____.

Question

Quizplus · Accepted Answer

A drop shipper arranges for products to be shipped directly from the supplier to the customer without ever handling or storing the product themselves. This is exactly what Newton Coal Supply does with coal. The other options - full-service merchant, cash and carry wholesaler, and truck jobber - all involve some form of physical handling or storage of the products.

Newton Coal Supply Takes Possession of Coal from the Local