Which type of business purchases and sells goods?

A merchandising business is characterized by its primary activities centered around purchasing goods from suppliers and selling them to consumers. This type of business often buys finished products at wholesale prices and then resells them at retail prices to earn a profit. A key aspect of merchandising businesses is that they do not typically engage in manufacturing processes; rather, they focus on facilitating the distribution of goods.

In contrast, a service business provides intangible services rather than physical products; for instance, consulting firms or hair salons. Non-profit organizations may sell goods but primarily focus on fulfilling a social mission and reinvesting any surplus revenue back into the organization rather than making a profit. Meanwhile, manufacturing businesses create new products through the process of transforming raw materials into finished goods for sale. Thus, the distinction lies in the core operations; whereas the merchandising business directly involves the buying and selling of finished goods, the other types involve different business functions.