Tag: characteristics of wholesale trade

Questions Related to characteristics of wholesale trade

_____ and agents are closer to the producers.

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. Retailers

  2. Wholesalers

  3. Customers

  4. All of the above

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Correct Option: B
Explanation:

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services.

 In general, it is the sale of goods to anyone other than a standard consumer.

______ has full authority to perform all functions relating to the business on behalf of his principal.

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. General Mercantile Agents

  2. Special/Particular Mercantile Agent

  3. Commission Agent

  4. Del Credere Agent

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Correct Option: A
Explanation:

A mercantile agent is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons.

A mercantile agent is one having authority in the course of business to sell goods or consign goods for the purpose of sale or to buy goods and even to raise money on the security of goods. A mercantile agent is also called a commissioner agent.

A mercantile agent possesses which of the following characteristics?

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. He has the authority to buy and sell goods on behalf of his principal.

  2. He does not do business for himself, but only represents his principal in all business dealings.

  3. He is a business intermediary between the manufacturer and the ultimate consumer.

  4. All of the above

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Correct Option: D
Explanation:

A mercantile agent is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons. The person on whose behalf he acts as an agent is known as the 'Principal'.

As the goods are exchanged from one intermediary to the other, their prices _____.

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. deflate

  2. remain unchanged

  3. inflate

  4. any of the above

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Correct Option: C
Explanation:

Tradable commodities consist of basic goods used in commerce that are often interchangeable with other goods of the same type. 

Trading of commodities is usually executed through future contracts on exchanges that standardize the quantity and minimum quality of the products traded.

________ guarantees his principal for the payment for all the goods he sells irrespective of the payment received by him or not.

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. General Mercantile Agent

  2. A del credere agent

  3. A commission agent

  4. Special/Particular Mercantile Agent

Show answer
Correct Option: B
Explanation:

A del credere agency is a type of principal-agent relationship wherein the agent acts not only as a salesperson or broker for the principal, but also as a guarantor of credit extended to the buyer.

The wholesalers normally make forward dealing with the supply goods with the producer. This relieves the manufacturers from ______.

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. plan and regulate their production

  2. keeping the stocks

  3. interim loans

  4. none of the above

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Correct Option: B
Explanation:

The stock of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are commonly called stocks. A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares.

In which wholesaler's channel function might wholesalers provide quicker delivery to buyers because they are closer than the producers?

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. Warehousing

  2. Risk bearing

  3. Financing

  4. Transportation

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Correct Option: D
Explanation:

Transport or transportation is the movement of humans, animals and goods from one location to another. In other words the action of transport is defined as a particular movement of an organism or thing from a point A to the Point B. Modes of transport include air, land, water, cable, pipeline and space.

Wholesalers undertake advertisements and other sales promotional activities to induce customers to purchase the goods. The function performed by the wholesalers is ____.

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. Grant of credit

  2. Specialized knowledge

  3. Marketing support

  4. Risk sharing

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Correct Option: C
Explanation:

Marketing Support Service. A Marketing Support Service would typically include some or all of the the following elements Stationery & Marketing Collateral management  design, print, logistics. Website portfolio design and development. Advertising Campaign media planning / buying, creative, delivery & management.

Facilitating large scale production is one of the services of wholesalers to manufacturers. What do wholesalers do through this function?

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. Wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payment for the goods purchased by them.

  2. They bear lots of risks such as the risk of fall in prices, theft, pilferage, spoilage, fire, etc.

  3. Wholesalers collect small orders from number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities.

  4. All of the above

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Correct Option: C
Explanation:

Large scale production refers to the production of a commodity on a large scale with a large sized firm. It requires huge investments in plant and machinery. Large scale production can be carried out if the market size is large and expanding.Large scale firms are division of labor and production and sale of goods in large quantities. They cater to a large market. The industrial revolution laid the foundation of the factory system. The factory system which extensively used machinery and adopted division of labor made large scale production possible.

The following are some of the motives of large scale production.

  1. Desire for economy.
  2. Desire for increase in sales.
  3. Desire for a large customer base.
  4. Desire for large profits.
  5. Desire to become a global company.
  6. Desire for economic power.
  7. Desire for continuous growth and expansion.
  8. Desire to increase demand.
  9. Desire to overcome competition.
  10. Desire to achieve monopoly status.
  11. Desire for achieving long term profitability.

Which of the following is referred to as 'Voluntary chains?'

business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

  1. Co-operative retailing

  2. Retailers co-operatives

  3. Consumer's cooperatives

  4. Instalment selling

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Correct Option: B