Wholesale Trade MCQ Part 2

Wholesalers link manufacturers and retailers by providing services.

Which group of wholesaling services are provided only to retailers?

• buying in bulk, storing goods, preparing goods for sale

• clearing production lines, displaying goods, warehousing

• giving trade discount, providing delivery services, breaking bulk

• providing market information, bearing risk, storing raw materials

Which service is provided by wholesalers to manufacturers?

• clearing production lines

• offering loans

• providing cash and carry services

• supplying goods locally

The diagram shows a chain of distribution.

producer → retailer → consumer

For which product would this chain of distribution be most suitable?

• a variety of canned foods sold through small-scale retailers

• branded perishable goods sold in supermarkets

• coffee ready for export to a number of countries

• imported raw materials required by manufacturers

The decline of the independent wholesaler has been caused partly by the growth of

• automatic vending machines.

• cash and carry warehouses.

• large-scale retailers.

• mobile shops.

To prevent a decline in their trade, traditional wholesalers have set up

• bonded warehouses.

• cash and carry warehouses.

• hypermarkets.

• multiple chains.

Which channel of distribution would be most suitable for sending canned fruit from producers in

South Africa to consumers in England?

• producer → agent → consumer

• producer → agent → retailer → consumer

• producer → agent → wholesaler → retailer → consumer

• producer → consumer

1. The diagram shows four different intermediaries that XYZ & Company could use to export its

manufactured products.

Which activity applies only to a merchant when preparing to export XYZ & Company’s

manufactured products?

• arranging necessary transport to carry products to other countries

• buying the products before selling them for profit

• finding and dealing with creditworthy buyers in other countries

• providing suitable warehousing while the products await export

What is a function of a wholesaler?

• to act as a link between manufacturers and retailers

• to advertise widely on television and radio

• to control demand from retailers and consumers

• to provide after-sales service to customers

Mr Singh has bought 1000 shirts from a wholesaler at a total cost of $2000. Mr Singh wants to make a profit of 50%.

At which price will Mr Singh need to sell each of the shirts?

• $1

• $2

• $3

• $4

Which service provided by a wholesaler is a small-scale retailer least likely to benefit from?

• convenient opening hours at the wholesaler’s cash and carry warehouse

• credit facilities to allow the retailer to sell before making a payment

• delivery of goods to the retailer to save the retailer’s transport costs

• forecasts of possible changes in the market for consumer products