Accounting Fundamentals Certification (AFC) 2025 – 400 Free Practice Questions to Pass the Exam

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Which of the following is NOT an element of a merchandising business?

Purchasing products for resale

Catering services

A merchandising business primarily engages in the buying and selling of products. The core activities of such a business involve purchasing merchandise for resale, which is critical to its operational structure. This requires storing inventory until it is sold, and the final aspect involves making sales to customers, which generates revenue.

Catering services, on the other hand, focus on providing food and drink services, typically involving preparation and service rather than the resale of products. While catering may involve elements of inventory management and sales, it does not fundamentally revolve around the concept of a merchandising business. Therefore, it is appropriately identified as not being an element of a merchandising business.

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Storing inventory

Sales to customers

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