JAMB Commerce 2006 Question 49

Question 49

Wholesale Trade

The role of a wholesaler in the channel of distribution is to

  1. A.produce goods in large quantities and sell in small quantities
  2. B.buy goods directly from the manufacturers
  3. C.buy goods in large quantities and sell in small quantities
  4. D.sell goods directly to the consumers.
Show the answer and explanation

Answer: C (buy goods in large quantities and sell in small quantities)

Explanation

The wholesaler buys in bulk from producers and breaks the bulk into smaller lots for retailers.