Future Business Leaders of America (FBLA) Marketing Practice Test

Who do manufacturers typically sell their products and services to for profit?

1. Direct consumers

2. Retailers

3. Wholesalers

4. Online marketplaces

The correct answer is: Wholesalers

Manufacturers typically sell their products and services to wholesalers for profit. Wholesalers act as intermediaries between manufacturers and retailers or other businesses, purchasing goods in bulk at a lower price and then selling these goods to retailers or sometimes directly to consumers. This allows manufacturers to focus on production and not worry about the complexities of retail sales directly. Wholesalers generally take on the task of storage and distribution, which enables manufacturers to reach a wider audience without needing to manage relationships with each individual retailer or consumer. This distribution method is efficient, as it allows manufacturers to sell large quantities of product to wholesalers who then manage smaller sales to the end markets. The other choices describe different channels within the supply chain. Direct consumers refer to the final users of products who generally do not purchase directly from manufacturers in large quantities. Retailers are the businesses that buy products from wholesalers and then sell them to consumers, but they are not the primary customers of manufacturers. Online marketplaces represent platforms where products can be sold to consumers but do not typically function as the immediate sales channel from manufacturers, as they usually act as a retail environment.