Marine-Unlimited buys tropical fish from local fish growers. The company takes title to the tropical fish for some period of time before selling to the many pet shops around the area on a cash or credit basis. Marine Unlimited is called a
A. cash-and-carry wholesaler
B. rack jobber
C. producers' cooperative
D. mail-order wholesaler
E. merchant wholesaler
Answer: (E) Merchant wholesalers own (take title to) the products they sell. Cash-and-carry wholesalers (A) operate as service wholesalers, except that the customer must pay cash. Rack jobbers (B) specialize in nonfood products sold through grocery stores and supermarkets, often displayed on wire racks owned by the rack jobber. Producers' cooperatives (C) operate almost as full-service wholesalers with the profits going to the cooperative's customer members. Mail-order wholesalers (D) sell out of a catalog that may be distributed widely to smaller industrial customers or retailers who might not be called on by other middlemen.