Wholesale Trade Quiz Part 4

Which service does the wholesaler provide to manufacturers but not to retailers?

• clearing production lines

• giving advice and information

• offering storage of goods

• steadying prices of goods

What does a factor do?

• arranges insurance for goods

• brings buyers and sellers of shares together

• guarantees to sell goods for the exporter

• sells goods on behalf of his principal

What is a function of the wholesaler but not of the small retailer?

• breaking bulk

• displaying goods

• offering loss leaders

• providing informal credit

MEL is a large supermarket chain which sells many of its own branded goods.

Which channel of distribution enables MEL own branded goods to reach consumers?

• producer → consumer

• producer → regional distribution centre → retailer → consumer

• producer → sole agent → retailer → consumer

• producer → wholesaler → retailer → consumer

Four channels of distribution are shown.

What is the most appropriate distribution channel for the selling of bread?

• A

• B

• C

• D

Why is the wholesaler being eliminated in some trades?

• Cash and carry warehouses are becoming more popular.

• Large-scale retailing has increased.

• Many small-scale retailers buy in small quantities.

• Self-service is used in many shops.

Which product is most likely to be sold through a wholesaler?

• a case of canned fish

• a loaf of bread

• a ship produced to an individual design

• a supermarket’s own brand products

Mr Smith runs a small shop. He buys his stock from a cash and carry warehouse. This means

that he has to

• buy in very large quantities.

• collect the goods himself.

• make his order via the Internet.

• pay the warehouse monthly using his credit card.

Most wholesalers do not operate retail businesses.

What is the reason for this?

• Wholesalers are located in warehouses in industrial areas.

• Wholesalers buy in bulk from manufacturers and clear production lines.

• Wholesalers provide many services to small-scale retailers.

• Wholesalers would be in competition with their own customers.

What are companies that specialise in arranging transport, insurance and customs clearance

called?

• brokers

• factors

• freight forwarders

• merchants