Entrepreneurship and Small Business (ESB) Certification Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Entrepreneurship and Small Business Certification Exam. Use our quiz featuring flashcards and multiple-choice questions, complete with hints and detailed explanations. Ensure your success on the ESB certification!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What best describes the function of a wholesaler?

They sell directly to consumers
They act as a middleman between manufacturers and retailers
They create and design products
They manage customer relationships

The correct answer is: They act as a middleman between manufacturers and retailers

The role of a wholesaler is primarily that of an intermediary in the supply chain, acting as a middleman between manufacturers and retailers. They purchase goods in large quantities directly from manufacturers and then sell those goods in smaller quantities to retailers, who in turn sell them to the end consumers. This process not only helps to reduce costs for retailers by allowing them to buy smaller amounts than they would order directly from manufacturers, but it also streamlines the distribution process. Wholesalers often have the logistical infrastructure to manage the storage and distribution of goods, which is essential for maintaining efficient supply chains. While selling directly to consumers, creating products, or managing customer relationships can be functions associated with businesses, they do not typically describe the primary role of a wholesaler in the marketplace.