Which type of business buys goods and sells them for profit?

Which type of business buys goods and sells them for profit?

• A. Wholesale business
• B. Manufacturing business
• C. Merchandising business
• D. Service business

Answer: (C)

A merchandising business is defined as one that purchases goods from manufacturers or wholesalers and sells these finished goods directly to consumers for profit. This type of business typically operates by acquiring inventory and managing the retail aspect of the sales process. In contrast, a wholesale business usually buys large quantities of goods and sells them in bulk to retailers rather than to end consumers, which does not align with the direct sale aspect highlighted in the question. A manufacturing business is involved in producing goods from raw materials, which is a different process than simply buying and reselling products. Finally, a service business focuses on providing services to clients or customers rather than selling physical goods, thereby distinguishing itself from the buying and selling process associated with merchandising. Hence, a merchandising business specifically focuses on the acquisition and resale of products, making it the correct answer.

A merchandising business is defined as one that purchases goods from manufacturers or wholesalers and sells these finished goods directly to consumers for profit. This type of business typically operates by acquiring inventory and managing the retail aspect of the sales process.

In contrast, a wholesale business usually buys large quantities of goods and sells them in bulk to retailers rather than to end consumers, which does not align with the direct sale aspect highlighted in the question. A manufacturing business is involved in producing goods from raw materials, which is a different process than simply buying and reselling products. Finally, a service business focuses on providing services to clients or customers rather than selling physical goods, thereby distinguishing itself from the buying and selling process associated with merchandising.

Hence, a merchandising business specifically focuses on the acquisition and resale of products, making it the correct answer.