1.

Explain briefly any four services of wholesalers to Manufacturers.

Answer»

(a) Facilitating large scale operation.

(b) Bearing risk

(c) Financial assistance.

(d) Expert advice.

Detailed Answer : 

Services provided by wholesaler to manufacturers are as follows : 

(a) Facilitating large scale production : A wholesaler purchases the goods from the manufacturer in large quantities. This enables the manufacture to produce on a large scale and obtain the benefits of economies of scale. 

(b) Financial assistance : The wholesalers make cash payments for the goods purchased by them. Sometimes they even pay money in advance for the bulk orders placed by them. So, the manufacturer's capital is not blocked in the stocks. 

(c) Bearing risk : A wholesaler takes title of goods, i.e., they purchase and sell goods in their own name. They purchase the goods in large quantities and store them in their warehouses. They bear the risk of fall in prices, theft, spoilage, fire etc. and relieve the manufacturer from bearing these risks. 

(d) Expert advice : A wholesaler provides very useful information regarding the tastes and preferences of the consumer, market conditions, competitive activities, etc. to the manufacture. 

(e) Storage : Wholesalers purchase the goods in bulk quantities from the manufacturers and store them in their warehouses.



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