Drop Shippers Do All of the Following EXCEPT Which of the Following

question 101

Multiple Choice

Drop shippers do all of the following EXCEPT which of the following?

• A) take title to the merchandise
• B) take actual possession of the merchandise
• C) take orders from retailers and industry buyers
• D) bill retailers and industry buyers
• E) assume the same risks as other types of limited-service merchant wholesalers

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Definitions:

Salvage Value

The assessed salvage value of an asset at the close of its lifespan.

Pretax Return

The income earned by a company before taxes are deducted.

Internal Rate Of Return

The discount rate at which the net present value of an investment project is zero; the rate of return of a project over its useful life.

Cash Inflow

The total amount of money being received by a company, often from its main activities such as sales of goods or services.