Future Business Leaders of America (FBLA) Hospitality Management Practice Test

Which type of selling occurs when one business sells goods or services to another business?

1. Retail selling

2. Business-to-consumer selling

3. Business-to-business selling

4. Direct selling

The correct answer is: Business-to-business selling

Business-to-business selling is a type of selling that specifically involves transactions between two businesses, rather than between a business and individual consumers. This approach is characterized by the exchange of goods or services that are intended for use in the production of other goods or services, or for resale. Examples of this include wholesale suppliers selling products to retailers or manufacturers purchasing raw materials for production purposes. Understanding this type of selling is crucial in the context of the hospitality industry, where businesses often rely on various suppliers and partners to operate their services effectively. This can involve anything from a hotel purchasing linens from a supplier to a restaurant acquiring food products from distributors. Consequently, recognizing the dynamics and strategies involved in business-to-business selling enables professionals to build and maintain productive relationships with their suppliers and business partners, which is essential for the overall success of their operations.