Newzon Coal Supply Takes Possession of Coal from Local Mining

question 147

Multiple Choice

Newzon Coal Supply takes possession of coal from 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 companies to their customers. This type of arrangement suggests that Newzon Coal Supply is a _____.

• A) drop shipper
• B) full-service merchant wholesaler
• C) cash and carry wholesaler
• D) truck jobber

---

Definitions:

Franchisor Fee

A payment made by a franchisee to a franchisor, typically for the right to use the franchisor's trademark, operational system, and ongoing support.

Franchises

Business models that allow individuals to operate their own outlets of a larger company, using its brand, processes, and resources.

Company Stores

Retail establishments operated by a company that sells its own products to its employees or the general public, often in a monopolistic or semi-monopolistic market.

Franchising Relationship

A business model that involves a franchisor licensing its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.