Which term best describes an independent business that distributes goods and services produced by other businesses?

• A. Consumer
• B. Retailer
• C. Producer
• D. Wholesaler

Answer: (D)

Verified step by step guidance

1. Understand the definitions of the key terms: A 'Consumer' is an individual or entity that purchases goods or services for personal use; a 'Producer' is an entity that creates or manufactures goods or services; a 'Retailer' sells goods directly to the final consumer, usually in small quantities.
2. Recognize that the question asks for a business that distributes goods and services produced by other businesses, which implies it does not produce the goods itself but acts as an intermediary.
3. Identify that a 'Wholesaler' is an independent business that buys goods in large quantities from producers and sells them to retailers or other businesses, rather than directly to consumers.
4. Compare the roles: Since the business distributes goods produced by others and is independent, it fits the definition of a wholesaler rather than a consumer, retailer, or producer.
5. Conclude that the term 'Wholesaler' best describes the independent business distributing goods and services produced by other businesses.