Question

Farrow’s Fabrics sells upholstery fabrics. Farrow’s Fabrics is a supplier of business products when it sells to furniture companies that manufacture sofas and chairs. Is Farrow’s Fabrics a supplier of business products when it sells fabric to Steve for him to re-upholster a sofa in his home? Explain your answer in no more than 3 bullet points. 1 mark for correct answer with valid explanation.

Answer 1

Farrow's Fabrics is a supplier of business products when it sells to companies, as fabrics are used in the production of goods for sale. However, when selling fabric to an individual for personal use, it is considered a consumer transaction, not the supply of business products.

Step-by-step explanation:

Farrow’s Fabrics acts as a supplier of business products when selling upholstery fabrics to furniture companies manufacturing sofas and chairs because:

• The fabric is used in the production process of creating goods for sale, which is characteristic of a business product.
• When selling to companies, the transaction is a business-to-business (B2B) sale, typical of a business product supply chain.
• However, when Farrow’s Fabrics sells fabric to an individual for personal use, such as Steve re-upholstering a sofa at home, this is considered a consumer transaction, not a supplier of business products.