Comstock Coal Distributors Does Not Mine Coal Itself

question 291

Multiple Choice

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.

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Definitions:

Management Costs

Expenses related to directing and controlling a business or part of a business, including salaries of managers and costs of administrative services.

Super Bowl

An annual championship game of the National Football League (NFL), which has become one of the most viewed sporting events in the United States, known for its halftime shows and commercials.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product demanded in the market.

Tickets

Documents or electronic codes that grant the holder the right to enter an event, travel on a vehicle, or participate in an activity.