What role does an intermediary play in business transactions?

An intermediary plays a crucial role in facilitating business transactions between suppliers and buyers. This function is essential because intermediaries help bridge the gap between producers and consumers. They can be wholesalers, distributors, agents, or brokers who take on responsibilities such as negotiating terms, managing logistics, or handling the distribution of products. By doing so, they make the process more efficient and can help both suppliers reach a wider market and buyers access a variety of products.

In contrast, direct selling to consumers, manufacturing goods, and maintaining stock for online sales are roles that do not encompass the intermediary function. Intermediaries do not typically manufacture products themselves; instead, they work with manufacturers to bring those products to market. Similarly, maintaining stock is not inherently linked to the intermediary role, as it often involves direct selling or retail operations rather than connecting suppliers and buyers. Understanding the intermediary's position in the supply chain highlights its importance in enhancing commerce and promoting market efficiency.