What are independent businesses that act as intermediaries by specializing in the trade of products made by certain manufacturers called?

• A. Intermediaries
• B. Distributors
• C. Wholesalers
• D. Retailers

Answer: (B)

Distributors are independent firms that act as intermediaries by representing specific manufacturers and handling the sale and distribution of their products to retailers or other businesses. They often have exclusive rights or a focused product line, providing marketing support, warehousing, and logistics to get the manufacturer’s products to market. This specialization differentiates them from generic intermediaries, as well as from wholesalers, who typically buy in bulk and sell to retailers or other businesses without tying their offerings to a single manufacturer. Retailers, on the other hand, sell directly to end consumers and usually carry products from multiple manufacturers rather than representing one brand.