Question

Q. Umesh is dealing in goods on large scale. He buys the goods directly from the manufacturing
industries in bulk and supply the same to the shops in the local area. He is not dealing with the
customers directly
. He even provides financial support to manufacturer, by providing advance
while placing order. Umesh acts as a middlemen between the manufacturer and the shopkeepers.
Umesh maintains huge quantity of stock, due to which he has to maintain large amount of
capital
(a) Which type of business Umesh is dealing in?
(b) Name the parties between which Umesh is acting as an intermediary.
(c) Discuss the services rendered by Umesh to manufacturers.​

Answer 1

Answer:

Umesh is dealing in goods on large scale. He buys the goods directly from the manufacturing

industries in bulk and supply the same to the shops in the local area. He is not dealing with the

customers directly

Answer 2

(a) Wholesale business.

In wholesale business goods are purchased in bulk at low prices and sold the goods in bulk to other retailers in the different part of the country.

(b) Manufacturer and Retailer,

The distribution chain of the flow of business is as:  

1)Manufacturer.

2)Wholesaler.

3)Retailer.

4)Customer.

(c) Financial assistance

Umesh provides financial assistance to manufactures by providing advance payments while placing order for the goods purchased by him as usually a 3 month credit period is provided by the manufactures to the wholesalers for making payments.