What type of business purchases finished goods for resale?

A merchandising business is characterized by its primary function of purchasing finished goods from manufacturers or wholesalers for resale to consumers. This model relies on the buying of already completed products rather than creating them from raw materials, which sets it apart from a manufacturing business that focuses on production. Merchandising businesses can operate through various channels such as physical retail outlets, online stores, or wholesalers.

In contrast, a manufacturing business is involved in the production of goods, creating products from raw materials; a service business primarily provides services rather than tangible goods; and while retail businesses do specifically sell directly to consumers, the term 'merchandising business' encompasses a wider variety of selling formats, including wholesale and other forms of resale, thereby making it the more encompassing correct answer in this context.