Which term describes a business that buys goods from manufacturers and sells them in smaller quantities to retailers?

• A. Retailer
• B. Wholesaler
• C. Manufacturer
• D. Distributor

Answer: (B)

Breaking bulk and distributing between production and retail is what a wholesaler does. A wholesaler buys goods from manufacturers in large quantities, stores them, and then sells them in smaller lots to retailers. This arrangement lets manufacturers move large volumes without handling countless smaller orders, and it lets retailers stock their shelves without needing to buy in huge quantities themselves. A retailer, by contrast, sells mainly to end consumers in small quantities, not to other businesses. A distributor might work closely with a manufacturer and focus on promoting or supporting a brand, but the specific idea of purchasing in bulk and breaking it into smaller lots for retailers points to a wholesaler.