Simple Test

1. Which of the following best describes a middleman?

• • A company that manufactures goods and services

• • An intermediary that connects producers and consumers

• 1. A government agency that regulates trade

• • A consumer who buys goods in bulk

1. What is the primary role of middlemen in the distribution channel?

• • To produce goods

• • To finance production

• • To facilitate the movement of goods from producers to consumers

• • To eliminate the need for warehousing

1. Retailers and wholesalers are two types of middlemen. Which of the following statements about them is true?

• • Retailers buy in bulk and sell to other businesses.

• • Wholesalers buy directly from consumers.

• • Retailers typically sell directly to end consumers.

• • Wholesalers have a closer relationship with end consumers than retailers.

1. Which type of middleman primarily brings together buyers and sellers without taking ownership of the product?

• • Broker

• Retailer

• Wholesaler

• Distributor

1. Which of the following is a common criticism of middlemen?

• • They help reduce product prices.

• • They can contribute to higher prices due to markups.

• • They manufacture low-quality products.

• • They limit consumer access to products.