Which statement is true about merchandising firms?

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The main idea is understanding what merchandising firms do: they buy finished goods and sell those goods to customers in a form that’s ready for sale. This means they keep merchandise in inventory and earn profits from the markup between purchase price and selling price. This setup is what distinguishes merchandising firms from service-only businesses, which sell intangible labor and often have little or no inventory, and from manufacturing firms, which create new products from raw materials rather than simply reselling existing items. Location isn’t what defines a merchandising business, since these firms can operate in urban, suburban, or rural areas alike. For example, a store that stocks books and sells them to customers buys the books and keeps them on hand to sell at a higher price.