Question

Q14. Niranjan deals in cosmetics on large scale. He buys the goods in bulk directly from the
manufactures and supply the same to the shops. He does not deal directly with the customers.
Niranjan also provides financial support to manufacturers by making payment in advance while
placing the order. On the basis of the given information, answer the following questions:
(a) In which type of business Niranjan is engaged?
(b) Niranjan is serving as an important link between the two parties. Identify the two parties.
(c) Discuss the services
rendered by Niranjan to any one party identified in part (b).
3​

Answer 1

Answer:

a) Whosale Trade and Niranjan is wholesaler.

b) Between producer and Retailer.

c) Refer to attachment

and in attachment They are the services towards Retailer

Answer 2

Niranjan is engaged in the wholesale business and serves as a link between manufacturers and traders.

Explanation:

• (a) Niranjan is engaged in the wholesale business. He does not deal directly with customers. He buys the products in bulk from manufacturers and supplies them to retailers.
• (b) The two parties Niranjan is serving as an important link between are: manufacturers and retailers. manufactures are the people who produce the products in factories and retailers are the traders who sell the products to consumers directly in small quantities.
• (c) Services provided by Niranjan to "manufacturers" are:
• 1) Economic benefit - since Niranjan buys products in bulk, the manufacturers also produce the products in bulk which will bring them economic benefits.
• 2) Financial support - since Niranjan gives advance payment to manufacturers, it helps them to build financial stability.
• 3) Assistance in production - wholesalers assist manufacturers in the production process by providing raw material and inputs from various locations in one place.