Which type of transaction describes a sale between businesses?

• A. Physical
• B. Business-to-Consumer(B2C)
• C. Business-to-Business(B2B)
• D. Digital

Answer: (C)

Understanding how transactions are categorized by who the customer is helps here. When a sale happens between two businesses, the transaction is described as Business-to-Business, or B2B. This contrasts with Business-to-Consumer, where a business sells directly to an individual. B2B transactions often involve larger quantities and longer sales cycles, like a parts manufacturer selling components to another manufacturer or a software company licensing enterprise software to a business. The other terms describe different aspects: Physical refers to tangible goods, and Digital refers to the delivery format or medium, not who is buying. So the sale between businesses is a Business-to-Business transaction.