Which of the following best describes a distributor's function in a consumer goods channel?

• A. Sells goods in large quantities to retailers
• B. Sells services to retailers
• C. Produces goods
• D. Manages government contracts

Answer: (A)

In a consumer goods channel, a distributor acts as an intermediary who buys products from manufacturers and sells them to retailers, helping to move goods through the market and often handling storage and delivery. This makes selling goods in large quantities to retailers the best description, since distributors typically purchase in bulk from producers and supply retailers with larger lots to stock their shelves. They don’t primarily sell services, which is more the realm of service providers; they don’t produce the goods themselves, which is the producer’s role; and handling government contracts isn’t the core function of a typical distributor.