Arnold Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Arnold works for carries inventories of the tools, which reduces capital requirements for the producers. Arnold's company is an example of a(n) ____ in a distribution channel.

Question

Quizplus · Accepted Answer

Arnold's company fits the definition of an industrial distributor, as they buy from large producers and sell to manufacturing companies, while also carrying inventories to reduce capital requirements for producers. None of the other options fit this description as closely.

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