A business that buys goods from manufacturers and wholesalers, and sells them in small quantities to consumers describes which term?

• A. Direct selling
• B. Retailer
• C. Distribution
• D. E-commerce

Answer: (B)

In this question you’re looking at the role of a retailer in the supply chain. A retailer is a business that buys goods in large quantities from manufacturers or wholesalers and then sells them in smaller quantities to consumers. They act as the bridge between producers and the public, making products accessible in convenient locations or formats (in-store or online) and often offering additional services or a customer experience.

This description fits a retailer because the business buys from producers or wholesalers and sells to individual customers in small quantities. Direct selling would bypass retailers and sell straight to consumers, often from the producer. Distribution describes the broader process of moving goods through the channel and isn’t naming the business type. E-commerce refers to selling online, which is a method of selling rather than the specific role of a retailer. Therefore, the best term is retailer.