Define wholesaler.

Define wholesaler.

• A. someone who sells to retailers
• B. someone who inspects gemstones
• C. someone who sells to retailers
• D. someone who sells to manufacturers

Answer: (C)

A wholesaler is a middleman in the distribution chain who buys goods in large quantities from producers and sells them in smaller lots to retailers or other businesses. This setup helps retailers stock products without dealing with many different suppliers, while allowing producers to move large volumes efficiently. In the diamond trade, a wholesaler typically purchases diamonds in bulk and supplies them to jewelry retailers or other diamond dealers, rather than selling directly to end customers. The option that states selling to retailers reflects this common role of bridging production and retail channels. The idea of inspecting gemstones describes a grader or appraiser, not a distributor, and selling to manufacturers would place the business upstream, which isn’t the usual function of a wholesaler.

A wholesaler is a middleman in the distribution chain who buys goods in large quantities from producers and sells them in smaller lots to retailers or other businesses. This setup helps retailers stock products without dealing with many different suppliers, while allowing producers to move large volumes efficiently. In the diamond trade, a wholesaler typically purchases diamonds in bulk and supplies them to jewelry retailers or other diamond dealers, rather than selling directly to end customers. The option that states selling to retailers reflects this common role of bridging production and retail channels. The idea of inspecting gemstones describes a grader or appraiser, not a distributor, and selling to manufacturers would place the business upstream, which isn’t the usual function of a wholesaler.