Question

Wholesaling is concerned with the activities of those persons or establishments which sell to retailers and other merchants, and/or to industrial institutional and commercial users.

• A. True
• B. False

Answer 1

The correct option is A True

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.

Examples of this would be plumbers supply houses, or electricians supply firms, or lumber firms that sell only to contractors. Car maufacturers typically sell their cars thru distribution channels direct to car dealers and function as their own wholesalers.