Which marketing channel distributor does not take title to goods and is paid a commission for negotiating between the buyer and seller?

Which marketing channel distributor does not take title to goods and is paid a commission for negotiating between the buyer and seller?

• A. Wholesaler
• B. Special breed delegate
• C. Broker
• D. Manufacturer's representative

Answer: (C)

A broker is the intermediary who brings buyers and sellers together, negotiates terms, and gets paid a commission for facilitating the deal. They do not take ownership or title to the goods, so they don’t handle inventory or assume product risk. This combination—no title transfer and earning a commission for negotiating—defines the broker’s role in marketing channels. Wholesalers buy and take title to goods to resell, so they don’t fit. A manufacturer’s representative sells on behalf of a specific manufacturer and may earn commissions, but their primary function is representing a manufacturer's line rather than acting purely as a neutral matchmaker between buyers and sellers. The term that doesn’t describe the standard broker role is the unusual or nonstandard option.

A broker is the intermediary who brings buyers and sellers together, negotiates terms, and gets paid a commission for facilitating the deal. They do not take ownership or title to the goods, so they don’t handle inventory or assume product risk. This combination—no title transfer and earning a commission for negotiating—defines the broker’s role in marketing channels.

Wholesalers buy and take title to goods to resell, so they don’t fit. A manufacturer’s representative sells on behalf of a specific manufacturer and may earn commissions, but their primary function is representing a manufacturer's line rather than acting purely as a neutral matchmaker between buyers and sellers. The term that doesn’t describe the standard broker role is the unusual or nonstandard option.