Theory question 101
Wholesale TradeCommerce 2 (essay)
(a) Explain six functions of wholesalers to manufacturers.
(b) State four problems that a cooperative society may likely face.
Show the model answer
(a) Any six, explained: buys in bulk, so the manufacturer can mass-produce; provides storage, saving the manufacturer warehouse space; finances manufacturers by paying promptly or in advance; gives market information on consumers' tastes; bears risks of price changes and damage; advertises and promotes the goods; distributes goods to many retailers; may grade, pack and brand goods.
(b) Any four: shortage of capital; embezzlement/mismanagement by officials; members failing to repay loans; lack of education/expertise of members and officials; poor record keeping; disagreements and favouritism among leaders; competition from big businesses.
In (a) say how each service helps the manufacturer.