Paper 2 · Retailing and the chain of distribution
Why might a wholesaler be eliminated from the chain of distribution?
AManufacturers are legally forbidden from selling their goods directly to retailers
BLarge-scale retailers have grown enough capital to buy directly from manufacturers in bulk
CWholesalers now handle all perishable and made-to-order goods exclusively under an exclusive licence
DConsumers are required by law to buy all of their household goods only from registered wholesalers
Explanation: The growth of large-scale retailers with enough capital to buy in bulk eliminates the wholesaler.
Derived from ZIMSEC Commerce 7103/2 Paper 2, June 2005, Q2
