Theory question 103
Distributive Trade(a)(i) Define distribution of goods. (ii) Illustrate the normal chain of distribution of goods.
(b) Describe a consumer's cooperative society.
(c) Outline any four roles performed by a consumers' cooperative society.
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(a)(i) Distribution is the process of moving goods from producers to final consumers, including wholesaling, retailing, transport, storage and advertising.
(ii) Producer/manufacturer → wholesaler → retailer → consumer.
(b) A consumers' co-operative society is an association of consumers who contribute capital to buy goods in bulk directly from producers or wholesalers and sell them to members (and others) at fair prices; profits are shared as dividends according to members' purchases; it is run democratically (one member, one vote).
(c) Any four: buys in bulk and sells to members at low prices; eliminates middlemen; protects members from exploitation and hoarding; provides genuine/quality goods; pays dividends to members; educates members on thrift and consumer matters; stabilises prices.
Consumers' co-operatives cut out middlemen to lower prices for members.