Entrepreneurship and Small Business (ESB) Certification Practice Exam

In a one-level distribution model, the product is sold directly from the:

1. Wholesaler to the retailer

2. Manufacturer to the customer

3. Retailer to the end-user

4. Agent to the retailer

The correct answer is: Manufacturer to the customer

In a one-level distribution model, products are sold directly from the manufacturer to the customer, eliminating intermediaries such as wholesalers or retailers. This model allows for a more direct connection between the producer and the consumer, often resulting in lower costs for customers as well as improved profit margins for the manufacturer. This direct approach is commonly found in scenarios such as online sales, where manufacturers can reach consumers without needing to go through traditional retail channels. The other options involve intermediary steps—such as the wholesaler, retailer, or agent—that do not fit the one-level distribution model, where the essence is direct interaction between the producer and the end-user.