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WAEC Commerce 2013 Question 37

Question 37

Warehousing

Which of the following is not a function of warehousing?

  1. A.Creating scarcity of goods.
  2. B.Stabilization of price.
  3. C.Production ahead of demand.
  4. D.Storage of goods.
Show the answer and explanation

Answer: A (Creating scarcity of goods.)

Explanation

Warehousing reduces scarcity by releasing goods when needed; creating scarcity (hoarding) is not its function.