Wholesale Trade MCQ Part 1

What is the advantage to a manufacturer of using the channel of distribution shown?

manufacturer → wholesaler → retailer → consumer

• The goods reach the consumer quickly.

• The manufacturer’s distribution costs are saved.

• The manufacturer must store the goods.

• The selling of goods is controlled by the manufacturer.

Which service is provided by wholesalers to manufacturers?

• forecasting the likely changes in the market

• giving information on record-keeping

• operating a cash-and-carry facility

• providing a wide range of goods

The table shows the cost to the retailer of purchasing canned food from three different sources.

Why is the cash and carry wholesaler able to quote the lowest price?

• goods are sold only to large-scale retailers

• no advertising costs are involved

• no delivery or credit is offered

• storage is not required

What is the name of an agent who buys and sells goods on a commission basis for another

person?

• broker

• manufacturer

• retailer

• underwriter

In which trade is the wholesaler most likely to be eliminated?

• blankets

• bread

• clothes

• meat

A general wholesaler acts as a middleman between the manufacturer and the retailer.

Which function carried out by the wholesaler benefits both the manufacturer and the retailer?

• clearing stocks to enable production to continue

• displaying goods ready for sale

• giving help and advice on the use of new products

• taking the risks of damaged and unsold goods

Which agent advises companies on the best means of moving goods?

• broker

• del credere agent

• factor

• freight forwarder

Which service does a wholesaler provide for retailers?

• credit information about customers

• debt collection

• maintenance of goods

• wide variety of goods

A factor is an agent who

• charges higher commission than other agents.

• guarantees to sell goods for his principal.

• owns the goods that he is offering for sale.

• sells the goods which he has in his possession.

A retailer is most likely to use a wholesaler when

• bulk orders are required by the retailer.

• goods are large and fragile.

• goods need after-sales service.

• the retailer has a small-scale business.