Question

What type of company purchases raw materials and makes goods to sell?

A- Manufacturers
B- Retailers
C- Wholesalers

Answer 1

(A) Manufacturers are companies that purchase raw materials and make goods to sell.

Step-by-step explanation:

The type of company that purchases raw materials and makes goods to sell is manufacturers. Manufacturers take raw materials and transform them into finished products that are sold to other businesses or consumers.

For example, an automobile manufacturer purchases raw materials like steel, rubber, and plastic, and uses them to assemble cars which are then sold to dealerships or directly to consumers.

Manufacturers play a crucial role in the supply chain by adding value to raw materials and creating products that are ready for consumption.