A wholesaler is defined as which of the following?

• A. A company that manufactures products
• B. A company that buys merchandise from manufacturers and resells it to retailers
• C. A company that sells directly to customers
• D. A company that handles only logistics

Answer: (B)

Wholesalers act as intermediaries in the distribution channel, buying merchandise from manufacturers and reselling it to retailers. They typically purchase in large quantities, store the goods, and then break bulk into smaller lots that retailers can stock and sell. This makes it easier for manufacturers to reach many retailers without handling numerous small orders, and it gives retailers reliable access to products without dealing directly with multiple producers.

The other descriptions fit different roles: manufacturing goods is what a producer does, not a wholesaler; selling directly to customers is the role of a retailer or direct-to-consumer business; handling only logistics describes a logistics provider, which moves goods but doesn’t primarily buy and resell to retailers.