Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

Which type of seller is defined as one who sells products directly to the ultimate consumer?

1. Wholesaler

2. Retailer

3. Distributor

4. Broker

The correct answer is: Retailer

The correct answer is the retailer because a retailer is specifically defined as a business or individual that sells products directly to the consumer for personal use. Retailers typically operate through physical storefronts or online platforms where they stock, market, and directly engage with customers, offering goods that are ready for use. Wholesalers, on the other hand, sell products in bulk to retailers or other businesses rather than to the end consumer, typically focused on supplying goods for resale rather than direct consumption. Distributors operate similarly but often facilitate the movement of goods from manufacturers to retailers, without typically engaging with the end consumer. Brokers act as intermediaries in transactions and do not take ownership of the goods, instead connecting buyers and sellers without selling directly to consumers. Thus, the term retailer is specifically aligned with the definition of selling directly to the ultimate consumer.