Which of the following best describes a trading business?

A trading business is primarily characterized by its operation of buying goods with the intention of reselling them at a profit. This definition encompasses businesses that focus entirely on the procurement and distribution of products, engaging in activities such as wholesale and retail. The core essence of a trading business lies in its transactional nature—acquiring inventory and selling it, which drives its revenue.

In contrast, other options present distinct types of business models. For instance, providing a service for clients refers to service-based businesses, which do not involve the buying and selling of physical goods. Engaging in financial consulting is another service-oriented model, which again does not align with the characteristics of trading businesses. Lastly, manufacturing products for direct sale describes businesses involved in producing goods themselves rather than simply reselling goods that they have purchased. Therefore, the focus on purchasing goods for resale is what distinctly qualifies a business as a trading business.