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11th Standard English Medium Commerce Subject Channels of Distribution Book Back 3 Mark Questions with Solution Part - I updated Book back Questions Set A

Published on: 13/05/2022

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Std: 11th Standard - Commerce

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Questions:

Generic 3

5 x 3 = 15

What are the services rendered by a wholesaler to the manufacturers?

Explain any three characteristics of wholesalers?

Explain the types of Mercantile Agents

Who is a factor?

What do you understand by channels of distribution?

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Answers Key:

Generic 3

5 x 3 = 15

A wholesaler provides valuable services to manufacturers, producers, retailers and customers.
1. Economies in Large Scale.
2. Assistance in Distribution.
3. Warehousing Facility.
4. Forecasting of Demand
5. Publicity of Goods
6. Financial Assistance.
7. Risk-bearer
8. Link

The following are the characteristics of wholesalers :
1. The wholesaler buys goods directly from the producers or manufacturers.
2. Wholesalers buys goods in large quantities and sell in relatively smaller quantities.
3. Wholesaler sell different varieties of a particular variety of product
4. They employ a number of agents or workers for distribution of products.
5. They need large amount of Capital to be invested in his business
6. They generally provide credit facility to retailers.

Kinds of Mercantile Agents or Agent Middlemen:
1. Brokers
2. Factors
3. Commission Agents
4. Del-credere Agents
5. Auctioneers
6. Warehousekeepers.

A factor is a mercantile agent to whom goods are entrusted for sale by a principal. He takes physical possession of the goods, though he does not obtain ownership of the goods. A factor sells goods in his own name without revealing the name of his principal.

A channel is the route through which the goods are passed on to the ultimate consumer. There are direct channels or routes of distribution without middlemen. Indirect channel consists of one or more middlemen performing different functions. Middlemen help in the flow of goods towards the lakhs or crores of consumers.