Question

Saturn Systems, an electronic goods manufacturer, sells its LED bulbs to Shockwave Enterprise, which in turn sells those bulbs to final consumers. In this scenario, Shockwave Enterprise is a _____.
A. wholesaler.
B. producer.
C. retailer.
D. broker.

Answer 1

Answer:

C. retailer

Explanation:

A retailer is a business entity that buys goods from manufacturers or wholesalers and sells them to the end-users.  A retailer is, therefore, a middleman who helps customers acquire products from manufacturers.

There are several types of retailers classified according to their size and nature of business. Departmental stores are the largest retailers. They stock a wide range of products from electronics, jewelry, food items, furniture, clothing, to books, all under one roof. Other retailers include supermarkets, drugstores, restaurants, convenience stores, and discount stores.

Retailers make profits by buying goods at a wholesale or factory price and selling them at a higher retail price.