Entrepreneurship and Small Business (ESB) Certification Practice Exam

What does business-to-business (B2B) sales entail?

1. selling directly to consumers

2. a business selling to another business

3. consumer-oriented marketing

4. franchise operations

The correct answer is: a business selling to another business

Business-to-business (B2B) sales involves transactions where one business sells products or services to another business. This type of sales relationship is characterized by the exchange of goods or services that are used in the production of other goods and services, or for providing services. B2B transactions often feature larger volumes, longer sales cycles, and more complex decision-making processes compared to business-to-consumer (B2C) sales. In B2B sales, companies typically engage in various marketing strategies aimed at building and maintaining relationships with other businesses. This relationship can lead to long-term partnerships and repeat business opportunities. Pricing structures, negotiations, and contract terms can also be more complex in B2B scenarios due to the nature of the products or services being exchanged. The other options are distinct from B2B sales: selling directly to consumers is a hallmark of B2C transactions; consumer-oriented marketing focuses on attracting individual consumers rather than other businesses; and franchise operations involve a different business model that is usually a mix of B2B and B2C, where a franchisor licenses its business to a franchisee. Therefore, the essence of B2B sales is specifically about the interaction between businesses.