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Merchandising businesses that sell to retailers are known as: Group of answer choices brokers. wholesalers. companies. service firms.

Question

Merchandising businesses that sell to retailers are known as:

  • brokers.
  • wholesalers.
  • companies.
  • service firms.
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Solution

Merchandising businesses that sell to retailers are known as:

  1. Brokers: This is incorrect. Brokers are intermediaries that facilitate transactions between buyers and sellers, but they do not typically own the goods they sell.

  2. Wholesalers: This is correct. Wholesalers are businesses that purchase large quantities of goods from manufacturers and sell them in smaller quantities to retailers. They are the link between the manufacturers and the retailers in the distribution chain.

  3. Companies: This is too broad. While a wholesaler is a type of company, not all companies are wholesalers. Companies can operate in various sectors and industries,

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