Question

Which of following statements about wholesalers are true and which are false?
(i) They buy goods directly from retailers, for sale to customers.
(ii) They generally provide credit facility to producers as well as to retailers.
(iii) They collect goods in large quantities and store them safely till they
are sold out.
(iv) Wholesalers require small amount of capital investment for their
business.
(v) They are located at a number of places in different markets near the
customer.
(vi) They buy goods of a large variety in small quantities for sale.

Answer 1

Answer:

Explanation:

1- The first statement is false that wholesalers  buy goods directly from retailers. Because wholesalers never buy from retailers, they infact give the goods to the retailers.

2-This is true that wholesalers tend to give credit facility to retailers. Which is why people opt for such buying methods.

3- This is true that wholesalers keep goods with them in large quantities. They also sell it in bulk.

5- This is false that wholesalers are located at a number of places in different markets near the  customer.  This is the opposite. They actually are located far and require retailers to purchase from them, who will be close to customers.

Answer 2

Answer:

1. False

2. True

3. True