Which of the Following Is a Defining Characteristic of Drop

question 8

Multiple Choice

Which of the following is a defining characteristic of drop shippers?

• A) They take ownership, but not physical possession, of the goods they handle.
• B) They do not do take title to the goods they distribute but take possession of those goods.
• C) They sell various noncompeting products to customers in a specific region.
• D) They set up displays in retail outlets, stock inventory, and perform other services such as marking prices on merchandise.
• E) They complete or customize solutions for customers.

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Definitions:

Liquidation Expenses

Costs associated with winding up a company's affairs and distributing its assets to claimants.

Capital Account Balances

The net result of public and private international investments flowing in and out of a country, showing changes in national ownership of assets.

Noncash Assets

Assets that cannot be quickly converted to cash, including property, plant, and equipment, and often valued at cost or depreciated cost on the balance sheet.

Liquidation Expenses

Costs incurred during the process of selling off assets or winding up a business, including legal fees, auctioneer fees, and other related expenses.