An electronics store buys electronic products from a manufacturer.It reaches out to retailers through promotional activities.However, the store is unable to sell some of the stock, and suffers a loss.Which of the following functions is the electronic store performing as an intermediary?

Question

Quizplus · Accepted Answer

The company is performing a transactional function.Intermediaries perform a transactional function when they buy and sell goods or services.But an intermediary such as a wholesaler also performs the function of sharing risk with the producer when it stocks merchandise in anticipation of sales.

An Electronics Store Buys Electronic Products from a Manufacturer