32 Questions
Which of the following best describes internal trade?
Buying and selling of goods and services within a country's border
What is the primary function of wholesalers in the process of distribution?
Enabling producers to reach a large number of buyers through retailers
Which category of trade refers to selling to retailers and other merchants but not to end users in considerable quantities?
Wholesale trade
What utility do wholesalers provide by making products available in a specific location and time?
Time and place utility
What do wholesale traders enable producers to do through retailers?
Reach a large number of buyers spread across a large geographic area
What functions do wholesalers perform in the distribution process?
All of the above
What is one of the services wholesalers provide to manufacturers?
Bearing risk of theft and spoilage
How do wholesalers facilitate production continuity for manufacturers?
By storing goods until demanded by retailers or consumers
What is an example of financial assistance provided by wholesalers to manufacturers?
Advance money for bulk orders
What role do wholesalers play in helping manufacturers with marketing functions?
Releasing manufacturers from many marketing activities
What service do wholesalers provide to retailers in terms of goods availability?
Providing diverse assortment of goods to retailers
How do wholesalers support retailers in increasing the demand for new products?
Providing marketing support to retailers
What advantage do retailers gain from the credit provided by wholesalers?
Increased working capital
What type of knowledge do wholesalers specialize in and pass on to retailers?
Understanding of the market for a particular product
What risk can retailers avoid due to their partnership with wholesalers?
Risk of pilferage during inventory management
What type of utility do wholesalers provide through storage of goods?
Time utility
What are the primary functions of wholesalers in the distribution process?
Product grading, packing into smaller lots, storage, transportation, promotion of goods, collection of market information
How do wholesalers provide time and place utility in the distribution of goods?
By making the products available in a location where they are needed and at a time when they are needed for consumption or use
What benefits do retailers gain from the credit provided by wholesalers?
Retailers gain financial assistance and flexibility in managing their inventory and cash flow.
How do wholesale traders enable producers to reach a large number of buyers and perform various distribution functions?
They enable producers to reach a large number of buyers spread across a large geographic area (through retailers) and perform functions such as product grading, packing, storage, transportation, and promotion of goods.
What role do wholesalers play in helping manufacturers with marketing functions?
Wholesalers assist in promoting goods and collecting market information, thus supporting manufacturers in marketing functions.
What type of utility do wholesalers provide by making products available in a specific location and time?
Time and place utility
What are some of the risks borne by wholesalers in their business operations?
Risks such as fall in prices, theft, pilferage, spoilage, and fire.
How do wholesalers help manufacturers in terms of cash flow?
Wholesalers make cash payments, allowing manufacturers to avoid blocking their capital.
What role do wholesalers play in providing marketing assistance to manufacturers?
Wholesalers release manufacturers from many marketing activities, enabling them to focus on production.
What is the primary function of wholesalers in relation to retailers?
Wholesalers provide a diverse assortment of goods to retailers and handle the work of collecting goods from several producers.
How do wholesalers support retailers in terms of credit?
Wholesalers usually provide credit to their frequent customers, enabling retailers to operate with a modest quantity of working cash.
What specialized knowledge do wholesalers possess and share with retailers?
Wholesalers specialize on a single product line and have a good understanding of the market, which is further passed to the retailers.
How do wholesalers facilitate production continuity for manufacturers?
Wholesalers facilitate production continuity by purchasing goods as and when they are produced and storing them until demanded by retailers or consumers.
What type of utility do wholesalers provide through storage of goods?
Wholesalers provide time utility by storing goods until they are demanded by retailers or consumers.
How do wholesalers help retailers in increasing the demand for new products?
Wholesalers are responsible for a variety of marketing duties and provide support to retailers, helping them in increasing the demand for various new products.
What functions do wholesalers perform in the distribution process?
Wholesalers hold the inventory of goods, collect goods from several producers, and provide marketing support to retailers.
Learn about internal trade, including the buying and selling of goods and services within a country's border. Explore the classification of internal trade into wholesale trade and retail trade. Perfect for revising the concepts of internal trade in 30 minutes.
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