Question

Which of the following is an example of a retail transaction?

1) A firm pays a printer for printing business cards.
2) A supermarket purchases eggs from a local farmer for resale.
3) A student purchases a magazine subscription from a door-to-door salesperson.
4) A manager of a college bookstore purchases extra copies of your Retailing text from the publisher.
5) A department store purchases cosmetics from a manufacturer for sale in its stores.

Answer 1

A retail transaction is represented by the 3) purchase of a magazine subscription from a door-to-door salesperson, as it is a direct sale of a product to the consumer for personal use.

Step-by-step explanation:

The example of a retail transaction among the provided options is number 3: A student purchases a magazine subscription from a door-to-door salesperson. This scenario involves a direct sale of a product to the consumer for personal use, which is characteristic of retail sales. In option 1, the transaction is B2B (business to business), as it involves a service provided to a firm. Options 2, 4, and 5 involve wholesale transactions, where goods are purchased not for personal use but for the purpose of resale.

An example of a retail transaction is when a department store purchases cosmetics from a manufacturer for sale in its stores. This is a retail transaction because the department store is buying products from a manufacturer to sell directly to consumers. A retail transaction is represented by the purchase of a magazine subscription from a door-to-door salesperson, as it is a direct sale of a product to the consumer for personal use.