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JAMB Commerce 1997 Question 21

Question 21

Wholesale Trade

The main aim of selling directly to consumers by manufacturers is to

  1. A.discourage the activities of middlemen
  2. B.make contact with consumers
  3. C.eliminate transportation cost
  4. D.maximize the profit margin.
Show the answer and explanation

Answer: A (discourage the activities of middlemen)

Explanation

Direct selling cuts out wholesalers and retailers, removing the middlemen from the chain.