Future Business Leaders of America (FBLA) Marketing Practice Test

Wholesale businesses are primarily known as what type of entity in the supply chain?

1. Manufacturers

2. Retailers

3. Resellers

4. Direct sellers

The correct answer is: Resellers

Wholesale businesses are primarily known as resellers in the supply chain. They act as intermediaries who purchase goods in large quantities from manufacturers and then sell them in smaller quantities to retailers or other businesses. This function allows manufacturers to focus on producing goods while wholesalers handle distribution, effectively bridging the gap between production and retail. Wholesalers typically do not sell directly to the final consumer, which distinguishes them from retailers. Instead, they serve as a vital link in the supply chain, allowing for efficient movement of products and enabling retailers to maintain adequate inventory levels without the need to purchase directly from manufacturers at potentially higher costs. Additionally, the role of manufacturers primarily involves the creation of products, while direct sellers engage in selling directly to consumers without any intermediary. Wholesalers’ specific function as resellers positions them uniquely in the supply chain, where they facilitate the redistribution of goods to various retailers or businesses.