Which of the following statements describes the key difference between merchant wholesalers and agents and brokers?

Question

Quizplus · Accepted Answer

The key difference between merchant wholesalers and agents and brokers is that merchant wholesalers take title to merchandise and agents and brokers do not. Merchant wholesalers purchase goods in bulk from manufacturers and sell them to retailers or other businesses. They own the merchandise and take on the financial risk involved in buying and holding inventory. Agents and brokers, on the other hand, do not take title to the merchandise. They facilitate sales transactions between buyers and sellers and receive a commission or fee for their services. They do not own the products they are selling and are not responsible for the financial risks associated with inventory holding.

Which of the Following Statements Describes the Key Difference Between