Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution channel.
A) direct distributor
B) manufacturers' agent
C) industrial distributor
D) producers' agent
E) wholesalers' agent

Question

Quizplus · Accepted Answer

Jeff's company is a type of industrial distributor that carries inventories of machine tools and sells them to manufacturing companies. They act as a middleman between the producers and the end customers, reducing capital requirements for the producers and providing convenience for the buyers.

Jeff Wood's Company Buys Machine Tools from Large Producers and Sells