Question

Merc Enterprise is an independent distributor that distributes coffee machines and water purifiers to firms on a large scale. In addition to taking legal possession of the goods it distributes, the company also provides a complete array of services that includes warehousing, shipping, product repairs, and credit to its business buyers. In this scenario, it can be said that Merc Enterprises is a(n) _____.

Answer 1

Answer: Merchant wholesaler

Explanation:

From this case/scenario we can state that Merc Enterprises is a example of a merchant wholesaler. Wholesale merchant tends to operate in a chain which reside between producer and retail merchant. Some merchants may try to organize movement of these goods instead moving goods themselves. Also the merchant wholesalers that tend to provide limited service take target to merchandise and thus assume risk that is involved in this independent operation.