Final answer:
A rack jobber who retains title to goods until they are sold and shares profits with the retailer is acting as a consignment agent.
Step-by-step explanation:
When a rack jobber retains title to the goods until they are sold and shares profits with the retailer, the jobber is acting as a consignment agent. A consignment agent is a person or company that holds and sells goods on behalf of the owner, and shares in the profits from the sale.
For example, let's say a rack jobber stocks a store's shelves with merchandise and retains ownership of the goods until they are sold. When a customer purchases an item, the retailer receives a portion of the sales price and the remaining profits go to the jobber.
This arrangement allows the retailer to have a variety of merchandise to offer without having to invest in inventory upfront, and the jobber benefits by having their products displayed in multiple locations.