Final answer:
Merchandising businesses comprise retail companies that sell finished goods to consumers. Manufacturing companies, however, produce goods from raw materials and are not considered merchandising businesses. Therefore, the statement is false.
Step-by-step explanation:
The statement is false. Merchandising businesses include companies that purchase and sell finished products without changing their form. Retail companies fall under this category as they buy goods from wholesalers or manufacturers and sell them to consumers. On the other hand, manufacturing companies are involved in the production of goods; they use raw materials, labor, and equipment to create new products, which is different from the activities of merchandising businesses.