Future Business Leaders of America (FBLA) Accounting Practice Test

Which business type sells directly to the final user?

1. Wholesaler

2. Middleman

3. Manufacturer

4. Retailer

The correct answer is: Retailer

The business type that sells directly to the final user is a retailer. Retailers are the entities that purchase goods from manufacturers or wholesalers and sell them directly to consumers. This relationship forms a critical part of the distribution chain, where retailers provide access to products for the end-user. In contrast, wholesalers typically buy in bulk from manufacturers and distribute these goods to retailers or other businesses, rather than selling directly to the final consumer. Middlemen generally act as intermediaries, facilitating transactions between two other parties (such as wholesalers and retailers), but they also do not sell directly to consumers. Manufacturers, on the other hand, produce the goods but do not usually engage directly with the final user unless they have a direct-to-consumer business model in place. In essence, the retailer is the point of sale that connects the product to the consumer, fulfilling the role of selling directly to the final user.