Future Business Leaders of America (FBLA) Accounting Practice Test

Who is considered a retailer?

1. A business that sells to wholesalers

2. A business that provides manufacturing services

3. A business that sells goods to the final user

4. A business that sells raw materials

The correct answer is: A business that sells goods to the final user

A retailer is defined as a business that sells goods directly to the final user or consumer. This means that retailers offer products in smaller quantities that consumers can purchase for personal use, as opposed to selling in bulk or providing manufacturing services. Retailers serve as the final link in the supply chain, connecting manufacturers or wholesalers to the end consumers. In contrast, other types of businesses like wholesalers operate by selling products in large quantities to retailers or other businesses, and manufacturers focus on creating products rather than directly selling them to consumers. Businesses involved in selling raw materials typically operate in a different segment of the market, primarily dealing with products that require processing or manufacturing before they reach the final consumer. Therefore, the definition of a retailer is specifically aligned with the direct sale of goods to individuals rather than to businesses or in bulk.