What type of business obtains income through buying and selling goods?

A merchandising business is characterized by its primary operation of buying goods and then selling them to consumers or other businesses for profit. This type of business does not typically produce the goods it sells; instead, it functions as a middleman between the manufacturer and the end user.

The focus of a merchandising business is on acquiring inventory at a wholesale price and retailing it to achieve a profit margin. This means that the income is directly related to the volume and pricing of the goods they sell. Common examples of merchandising businesses include retail stores, supermarkets, and online shops that sell a variety of products to consumers.

Understanding the definition of different types of businesses is crucial in recognizing how they operate and generate income. For instance, a service business predominantly provides services rather than physical goods, while a non-profit organization focuses on fulfilling a mission rather than generating profit, and an exporting business is specifically involved in the sale of goods across borders, which may or may not be considered merchandising depending on the context. Thus, the distinctive aspect of a merchandising business lies in its core activity of buying and selling goods for profit.