Theory question 103
Wholesale TradeCommerce 2 (theory)
(a) State four functions of a wholesaler to a retailer.
(b) Explain five advantages of small scale retail business over a large scale business.
Show the model answer
(a) Any four: breaks bulk; grants credit; gives information and advice; stores goods so the retailer need not hold large stocks; offers variety of goods; delivers goods; pre-packs and labels; advertises products.
(b) Any five, explained: personal attention to customers; credit to known customers; small capital needed to start; convenient location near homes and long opening hours; quick decisions by the owner; sells in very small quantities; flexible – easy to change line of goods; customers may bargain over prices; secrecy of affairs.
In (b) compare with large shops such as supermarkets and department stores.