A business that buys products from manufacturers and resells them to retailers or industrial or business users is known as a(n)

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

Answer: (A)

Understanding distribution-channel roles: a wholesaler is the intermediary that buys products in bulk from manufacturers and resells them to retailers or to business users. This setup bridges production and the next stage in the chain by handling bulk purchases, storage, and distribution so manufacturers don’t have to deal with many smaller buyers. That matches the described scenario of buying from producers and selling to retailers or industrial buyers. A retailer, by contrast, sells mainly to end consumers. A distributor is often closely tied to a specific manufacturer and may provide extra services, but the core function here is buying from producers and selling to other businesses, which is the hallmark of a wholesaler. A broker facilitates sales and doesn’t usually take ownership of goods.