A wholesaler buys large quantities from the manufacturer, breaks them into smaller units, and sells the smaller units to retailers. Which term describes this role?

• A. Wholesaler
• B. Manufacturer
• C. Retailer
• D. Department Store

Answer: (A)

The situation describes an intermediary in the distribution channel who buys in large quantities from the maker and then divides them into smaller lots to sell to retailers. That role is a wholesaler. The wholesaler’s key function is bulk-breaking—taking large lots from the manufacturer and splitting them into smaller units that retailers can purchase and stock.

This is different from a manufacturer, which creates the products; a retailer, which sells mainly to end consumers; and a department store, which is a type of retailer focused on consumer sales. Those roles don’t match the description of selling to retailers after breaking bulk.