Question

Firms that receive goods directly from an organization and are responsible for providing the goods to end-point retailers, and who sell directly to consumers are?

1) inbound suppliers
2) wholesalers
3) outbound suppliers
4) retailers

Answer 1

Wholesalers are firms that acquire goods from producers to supply them to retailers and sometimes sell to consumers; they are suppliers in the goods market.

Step-by-step explanation:

The firms that receive goods directly from an organization and are held responsible for providing these goods to end-point retailers, as well as selling directly to consumers are known as wholesalers. Wholesalers play a critical role in the distribution chain by buying large quantities of goods from producers and selling them in smaller quantities to retailers, who then sell to the final consumers. In the context of the Circular Flow Model, businesses or firms are suppliers in the goods market since they offer products to be consumed. On the other hand, households are generally demanders in the goods market, as they buy and consume these goods.

In the labor market, the situation is reversed: firms are demanders because they seek labor provided by households, who are the suppliers of labor. In the financial market, households can be suppliers of capital when they save money, and firms can be demanders when they need funds for investment.