A company that manufactures gym equipment, sells the equipment together with other items of inventory it purchases directly to customers through an online store, and provides installation and training services would be described as (select all correct entries)Group of answer choicesA merchandising businessA service businessA manufacturing businessA wholesaler
Question
A company that manufactures gym equipment, sells the equipment together with other items of inventory it purchases directly to customers through an online store, and provides installation and training services would be described as (select all correct entries)Group of answer choicesA merchandising businessA service businessA manufacturing businessA wholesaler
Solution
This company can be described as:
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A Manufacturing Business: This is because the company is involved in the production of gym equipment. Manufacturing businesses are those that convert raw materials, components, or parts into finished goods.
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A Merchandising Business: The company sells gym equipment and other items of inventory directly to customers through an online store. Merchandising businesses are those that purchase products from manufacturers and then sell those products to customers.
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A Service Business: The company provides installation and training services. Service businesses are those that provide services, rather than goods, to customers.
The company is not a wholesaler because it sells directly to customers, not to other businesses for resale. Wholesalers are businesses that sell products in large quantities to other businesses, typically for resale.
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