Morris, Inc. provides products and the means to display them in retail stores and shares the profits with the retailers. Morris, Inc. is a(n)
A) full-service merchant.
B) rack jobber.
C) cash-and-carry wholesaler.
D) manufacturer-owned wholesaler.
E) drop shipper.

Question

Quizplus · Accepted Answer

Rack jobbers are distributors who enter into agreements with retail stores to display their merchandise. They retain ownership of the merchandise while it is in the store, restock the shelves or racks, and share the profits from sales with the retailer. This model is exactly what Morris, Inc. is described as doing.