Target would primarily be considered a:
A. merchandising business.
B. service business.
C. manufacturing business.
D. not-for-profit business
The correct answer and explanation is:
The correct answer is A. merchandising business.
Target is primarily considered a merchandising business because it primarily sells products that are purchased from suppliers, without manufacturing them. A merchandising business operates by purchasing finished goods and then reselling them to consumers for a profit. Target’s business model involves sourcing various types of products, including clothing, electronics, food, and home goods, and offering them for sale in their retail stores and online platforms.
In contrast, a service business would provide intangible products or services rather than physical goods. Examples of service businesses include law firms, healthcare providers, and consulting companies. Target, which deals mainly with tangible goods, is not a service business.
A manufacturing business, on the other hand, creates goods from raw materials. It might design, produce, and sell its own products, which is not the case with Target. Target does not engage in manufacturing the products it sells; instead, it acts as an intermediary between manufacturers and consumers.
A not-for-profit business refers to organizations that operate to serve the public good, rather than to make a profit. Examples include charities, foundations, and other organizations focused on community welfare. Target, as a for-profit corporation, is not a not-for-profit business.
Therefore, the best fit for Target’s classification is merchandising business, as its primary role in the economy is to buy goods from suppliers and sell them to consumers at a markup.