WAEC Commerce 1994 Question 42

Question 42

Retail Trade

Which of the following is a problem facing mail order business?

  1. A.Expensive shop fronts
  2. B.cost of postage and advertisement
  3. C.Commission to agents
  4. D.Increase in branded goods
  5. E.Increase in the variety of catalogues
Show the answer and explanation

Answer: B (cost of postage and advertisement)

Explanation

Mail order firms sell by catalogues and adverts and send goods by post, so postage and advertising costs are heavy.