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JAMB Economics 1993 Question 22

Question 22

Distributive Trade

Which of the following functions does the wholesaler perform to save the retailer the burden of carrying large stocks?
I. Breaking the bulk
II. Packing the goods in smaller containers
III. Providing vital information.
IV. Granting credit facilities.

  1. A.I and II
  2. B.I and IV
  3. C.II and III
  4. D.I, II, III and IV
Show the answer and explanation

Answer: A (I and II)

Explanation

By breaking bulk and repacking goods into small lots, the wholesaler lets the retailer buy only the small quantities he can sell, so he need not hold large stocks.