Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

What term describes an agent who represents clients buying or selling specialized goods?

1. Distributor

2. Broker

3. Wholesaler

4. Retailer

The correct answer is: Broker

The term that accurately describes an agent who represents clients in the buying or selling of specialized goods is “broker.” Brokers act as intermediaries between buyers and sellers, facilitating transactions and ensuring that the needs of their clients are met. They typically have specialized knowledge about the products or markets they operate in, which helps them provide valuable insights and advice to their clients. This role is particularly important in industries where products are complex or require a deep understanding of market dynamics, making brokers essential for successful transactions. Distributors, wholesalers, and retailers have different functions in the distribution chain. Distributors usually purchase goods in bulk and then resell them, whereas wholesalers tend to buy large quantities from manufacturers and sell them to retailers or other businesses. Retailers sell directly to end consumers, focusing on consumer needs rather than acting on behalf of clients in negotiations or transactions. Thus, while these roles are vital in the supply chain, they do not specifically refer to the agent-like function that brokers fulfill.