Why are agents and brokers placed in a special category, treated neith

QUESTION

Why are agents and brokers placed in a special category, treated neither as wholesalers nor as retailers?

What will be an ideal response?

ANSWER

Answer: Agents and brokers don’t own or take title to the products they handle, they usually don’t carry any inventory or provide credit, and they earn fees or commissions rather than profits.
Explanation: There are several reasons why we treat agents and brokers as neither wholesalers nor retailers. Agents and brokers don’t own or take title to the products they handle, they usually don’t carry any inventory or provide credit, and they earn fees or commissions rather than profits.