Entrepreneurship and Small Business (ESB) Certification Practice Exam

A transaction where a customer purchases an item from a business is defined as what?

1. Business-to-Business

2. Business-to-Consumer

3. Consumer-to-Consumer

4. Online shopping

The correct answer is: Business-to-Consumer

A transaction where a customer purchases an item from a business is defined as Business-to-Consumer (B2C). This term specifically describes the direct interaction and exchange between businesses and individual consumers. In a B2C transaction, the business sells goods or services directly to consumers, who are the end users of the product. This model is prevalent in retail environments, both physical and online, where consumers make purchases for personal use rather than for resale or commercial purposes. Examples include buying groceries from a supermarket or ordering clothes from an e-commerce website. Other options present different contexts of transactions. Business-to-Business (B2B) refers to transactions between businesses, where one business sells products or services to another business rather than individual consumers. Consumer-to-Consumer (C2C) involves transactions directly between consumers, typically facilitated by a third party, such as in online marketplaces. Online shopping describes a method of purchasing and does not specifically categorize the relationship between the parties involved. Thus, B2C captures the essence of customer purchases directly from a business, clearly defining the nature of the transaction.