1.

Distinguish between a wholesaler and retailer.

Answer» Wholesalers
-It is the first link in the chain of distribution which links between manufactures and retailers.
-The wholesaler trade is conducted in bulk quantities.
-Most of the transactions are effected on the basis of credit.
-The capital requirement of this business is heavy.
-This type of trade deals in specific goods.
-It does not emphasize on proper display of goods.
-It does not experience direct dealing with consumers.
-It avails the economics of bulk purchasing.
-They operate in big cities and towns.
-It does not give emphasis on home delivery facility.
-It does not provide facility.
-It does not provide after sale service.
Retailers
-It is the last link in the chain of distribution which links wholesalers and consumers.
-It is conducted in small quantities.
-Most of the transactions take place on cash basis.
-This type of business usually require less capital.
-This type of trade deals in variety of goods.
-It gives a lot of emphasis on proper display and advertisement.
-It always deals directly with the ultimate consumers.
-It does not avail such economies because it does not incur bulk purchase of goods.
-They operate in small villages and in big cities.
-It gives much emphasis on home delivery facility.
-It provides after sale service to the consumers.


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