What type of business obtains products in bulk from manufacturers and sells them to other intermediaries?

Study for the Mariemont HS Business Foundations Test. Utilize flashcards and multiple choice questions with helpful hints and explanations for better preparation. Get ready for success!

The correct answer, wholesaler, refers to a type of business that specializes in purchasing products in large quantities from manufacturers. Wholesalers then sell these products to other businesses, such as retailers or other intermediaries, rather than directly to the end consumer. This allows them to benefit from economies of scale, as they can negotiate lower prices from manufacturers due to the volume of their purchases.

Wholesalers play a crucial role in the supply chain by bridging the gap between manufacturers and retailers, which can streamline distribution processes and help in managing inventory more efficiently. Their focus is mainly on bulk sales and creating relationships with other businesses rather than engaging with individual customers, which differentiates them from retailers.

Other options such as retailer, distributor, and manufacturer each have distinct functions in the business ecosystem. Retailers primarily sell directly to end consumers, distributors can have a broader role, sometimes merging the functions of wholesaler and retailer, and manufacturers are responsible for producing goods in the first place.

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