Which option best defines an intermediary?

• A. A customer
• B. A manufacturer
• C. Person or organisation that helps arrange arrangements between businesses
• D. A retailer

Answer: (C)

An intermediary is the middleman in the movement of goods who helps connect producers with other organisations and arranges deals, terms, and logistics. This definition fits a person or organisation that helps arrange arrangements between businesses, such as a broker or agent who negotiates contracts or a wholesaler that links manufacturers with retailers. They add value by reducing search costs and handling the complexities of a transaction between businesses.

A customer buys for personal use, so they’re not arranging business deals. A manufacturer is the creator of the product, not the go‑between for transactions. A retailer sells to end customers and may sit in the distribution channel, but their primary role isn’t to arrange business arrangements between organisations.