A merchandising company:
A) Earns net income by buying and selling merchandise.
B) Receives fees only in exchange for services.
C) Earns profit from commissions only.
D) Earns profit from fares only.
E) Buys products from consumers.

Question

Quizplus · Accepted Answer

A merchandising company earns its income by buying and selling merchandise. This means that they purchase goods from a manufacturer or supplier, mark up the price, and sell the goods to customers for a profit. The difference between the cost of goods sold and the selling price is the company's net income.

A Merchandising Company