Give one example of how a wholesaler acts as an intermediary. What wi

QUESTION

Give one example of how a wholesaler acts as an intermediary.

What will be an ideal response?

ANSWER

Answer: Makers of breakfast cereal, such as Kellogg’s, sell products to wholesalers, who in turn sell them to grocery stores, such as Whole Foods, who in turn sell them to customers. In this scenario, the wholesaler is acting as an intermediary between the producer and the retailer.
Explanation: Wholesalers, known as middlemen, are intermediaries who sell products to other businesses for resale to customers. Makers of breakfast cereal, such as Kellogg’s, sell products to wholesalers, who in turn sell them to grocery stores, such as Whole Foods, who in turn sell them to customers. In this scenario, the wholesaler is acting as an intermediary between the producer and the retailer.