Brokers are independent firms or individuals who
Multiple Choice
represent a single producer and are responsible for the entire marketing function of that producer.
work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.
take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.
own the merchandise they sell but do not physically handle, stock, or deliver it.
bring buyers and sellers together to make sales.
The Correct Answer and Explanation is :
The correct answer is:
bring buyers and sellers together to make sales.
Explanation:
Brokers are intermediaries who facilitate transactions between buyers and sellers but do not take ownership or possession of the goods they help sell. Their main role is to connect potential buyers and sellers and ensure that a deal is made, usually for a commission or fee.
The key characteristics of brokers are:
- Independent Intermediaries: Brokers do not work for one specific company or manufacturer. Instead, they work with various producers or sellers. This independence gives them flexibility in negotiating and arranging deals.
- No Title or Ownership: Brokers do not own the goods being sold. They simply bring the buyer and seller together and may provide additional services like advice, marketing, or facilitating negotiations.
- Transaction Facilitation: The broker’s primary function is to help secure deals. They do not involve themselves in the physical handling, storage, or transportation of products. Instead, they focus on completing the transaction by connecting the right parties.
In contrast, other choices describe different types of intermediaries:
- Represent a single producer: This describes agents, not brokers, as agents work for a single producer and handle all marketing tasks.
- Work for several producers with complementary merchandise: This might describe a wholesaler or distributor, who may manage exclusive territories.
- Take title to merchandise but sell only to buyers who meet certain conditions: This option aligns more with a merchant wholesaler or distributor who takes ownership of goods.
- Own the merchandise but do not physically handle or deliver it: This suggests a drop shipper, a type of intermediary who owns but does not manage physical goods directly.
Thus, brokers specialize in matching buyers with sellers and earn their income through commissions or fees based on the transactions they help facilitate.