Which type of commerce involves the sale of a product or service from one business to another and is typically a manufacturer-supplier relationship?

Which type of commerce involves the sale of a product or service from one business to another and is typically a manufacturer-supplier relationship?

• A. B2C
• B. C2B
• C. B2G
• D. B2B

Answer: (D)

In business-to-business commerce, transactions occur when one company sells products or services to another company. This exactly describes a manufacturer-supplier relationship, where the buyer is another business rather than an individual consumer. For example, a factory supplying components to a parts maker, or a software company licensing enterprise solutions to a corporation, fits this pattern. In contrast, business-to-consumer involves selling directly to individuals, business-to-government targets government agencies, and consumer-to-business is when individuals sell to businesses. B2B often features larger orders and longer sales processes tied to procurement and negotiations.

In business-to-business commerce, transactions occur when one company sells products or services to another company. This exactly describes a manufacturer-supplier relationship, where the buyer is another business rather than an individual consumer. For example, a factory supplying components to a parts maker, or a software company licensing enterprise solutions to a corporation, fits this pattern. In contrast, business-to-consumer involves selling directly to individuals, business-to-government targets government agencies, and consumer-to-business is when individuals sell to businesses. B2B often features larger orders and longer sales processes tied to procurement and negotiations.