An intermediary that purchases goods in large quantities, takes title to the merchandise, and then sells it to retailers or business users is called a commission broker.

Question

Quizplus · Accepted Answer

The intermediary described is not a commission broker, but rather a wholesaler or distributor. A commission broker typically does not take title to the merchandise, but instead acts as an agent to facilitate the sale between the buyer and seller and earns a commission on the transaction.

An Intermediary That Purchases Goods in Large Quantities, Takes Title