DECADECA Travel and Tourism Practice Exam

Which of the following describes an agent in the wholesale retail context?

1. A wholesaler who takes title to goods

2. A temporary representative for buyers and sellers

3. A wholesaler that engages in multiple functions

4. A wholesaler who does not take title to goods and represents buyers or sellers

The correct answer is: A wholesaler who does not take title to goods and represents buyers or sellers

In the wholesale-retail context, the correct description of an agent is one who does not take title to goods and instead represents either buyers or sellers. Agents operate as intermediaries, facilitating transactions without owning the products themselves. This allows them to focus on connecting buyers with sellers and negotiating deals on behalf of their clients, whether it be wholesalers looking to distribute goods or retailers seeking to stock their shelves. This role is fundamental to the supply chain, as agents provide valuable services such as market insights, negotiation expertise, and customer access. By acting on behalf of others, they help improve efficiency in the buying and selling process. The other options do not accurately capture the essence of an agent. A wholesaler who takes title to goods implies ownership and a different business model compared to an agent. Similarly, while a temporary representative can be related to agencies, it does not emphasize the specific nature of agents in the wholesale-retail context. Lastly, describing a wholesaler that engages in multiple functions misrepresents the agent's role as agents do not typically engage in multiple wholesale activities or take ownership of the goods they represent.