Question 91
Wholesale TradeWhich of the following is not a sound argument for the elimination of the wholesaler?
- A.Large retailers can buy from producers
- B.Retail co-operative societies can jointly buy in bulk
- C.Prices are lowered when the wholesaler is eliminated
- D.Some manufacturers prefer to distribute branded goods
- E.The retailer buys and stores goods until they are demanded
Show the answer and explanation
Answer: E (The retailer buys and stores goods until they are demanded)
Explanation
Storing goods until needed is actually a service the wholesaler gives, so it argues for keeping him, not removing him.