11th Standard English Medium Commerce Subject Channels of Distribution Creative 5 Mark Questions with Solution Part - I | QB365

11th Standard Syllabus & Materials

11th Standard

TN 11th Tamil இயற்கை வேளாண்மை,சுற்றுச்சூழல் -செய்யுள் - மனோன்மணீயம் Important Questions And Answers Study Material - QB365 Set A

NEW

11th Standard

TN 11th Tamil என்னுயிர் என்பேன் -துணைப்பாடம் - இசைத்தமிழர் இருவர் Important Questions And Answers Study Material - QB365 Set A

NEW

11th Standard

TN 11th Tamil மொழி கலை -செய்யுள் - ஒவ்வொரு புல்லையும் Important Questions And Answers Study Material - QB365 Set A

NEW

11th Standard

TN 11th Tamil பீடு பெற நில் - இலக்கணம் - பகுபத உறுப்புகள் Important Questions And Answers Study Material - QB365 Set A

NEW

11th Standard

TN 11th Tamil பீடு பெற நில் - துணைப்பாடம் - வாடிவாசல் Important Questions And Answers Study Material - QB365 Set A

NEW

11th Standard

TN 11th Tamil பீடு பெற நில் - செய்யுள் - குறுந்தொகை Important Questions And Answers Study Material - QB365 Set A

11th Standard English Medium Commerce Subject Channels of Distribution Creative 5 Mark Questions with Solution Part - I

Published on: 29/06/2021

QB365 provides detailed and simple solution for every
Creative Questions in class 11 Commerce Subject. It will helps to get more idea about question pattern in every Creative questions with solution.

Download Tamil Nadu 11th Standard Commerce question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

Questions + Answers key

Take MCQ Commerce Test

QB365 Student Learing Managemnet System

Std: 11th Standard - Commerce

chapter: - Creative Questions

Visit QB365-SLMS - https://www.qb365.in/slms/ Complete Questions and Answers

Questions:

Generic 5

5 x 5 = 25

A Rama industry was established to manufacturer fashion shoes. Since they were new in the market, they decided to sell their product through wholesalers. They appointed one wholesaler in each district and promised them verbally that they will remain the exclusive wholesalers in the area. After three years during one of the review meetings the sales manager informed that if company sells directly to retailers, they will be able to offer competitive prices, which will increase sales volume and eventually profits. He was directly supporting elimination of wholesalers.
a. Should the company follow sales manager's suggestion and start direct business with retailers?
b. What values would the company ignore if they by-pass wholesalers to earn extra profit?

Differentiate Wholesaler and Retailer.

Write a note on VAR.

What are the different between wholesaler and Retailer.

What are the services rendered by a retailer to wholesalers?

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 5

5 x 5 = 25

a. No, I don't think that company should follow sales manager's suggestion and start direct business with retailers, because it is the wholesalers who have put in all the effort to establish sales network and prepared a market for new product. The company has though verbally promised wholesalers the exclusivity to sell, so it may not send good signals about the company in the market. The wholesalers may sell the competitors product more aggressively, which may affect the company's sales adversely.
b. Values ignored are:
1. Mutual trust
2. Integrity
3. Importance to relationships

Sl.No	Bases of Differences	Wholesaler	Retailer
1	Link	A wholesaler serves as a link between producers and retailers. Wbolesaler is the first link in the chain of distribution of goods	A retailer provides a link between wholesalers and consumers. retailer is the last link in the chain of distribution of goods
2	Scale of operations	A wholesaler carries on business on a large scale and requires huge capital	A retailer, deals generally on a small scale and capital invested in retail trade is relatively small
3	Range of goods	A wholesaler generally deals in one commodity	A retailer deals in II large variety goods and caters to the diverse needs of his end customers.
4	Dealings	A wholesaler generally sells goods to retailers on credit	A retailer usually sells goods to end consumers on cash basis
5	Purpose of selling	A wholesaler sells goods for resale	A retailer sells goods for ultimate consumption or use.
6	Source of supply	A wholesaler buys goods from manufacturers and their agents in large quantities.	A retailer generally buys goods from wholesalers and their agents in small quantities.
7	Location	A wholesaler operates his business in big commercial cities and expands his business to different areas.	A retailer operates in a smallest village and also big cities and locates his business in particular place of area.

The VARs receive the products from the manufacturers, incorporate them as if their own products by adding value enhanced service and sell them to customers. VARs provide highly skilled technical support so that the customer can have world class satisfaction. Microsoft India has appointed Avnet and Redington as VARs in India. A solar panel producer may. have builders as VARs and the builders offer solar panel as additional facility to the buyers of flats, etc

Sl.No	Basis	Wholesaler	Retailer
1	Link	Wholesaler is a link between manufacturer and retailer.	Retailer is a link between the wholesaler and the ultimate consumer
2	Scale of Operations	A wholesaler carries on business on a large scale and requires huge capital	A retailer generally carries on business on a small scale and requires small capital
3	Range of goods	A wholesaler deals with only one product	A retailer deals with variety of goods
4	Dealings	Goods sold on Credit basis	Goods sold on Cash basis
5	Source of Supply	A wholesales purchases goods from manufacturer	A retailer buys goods from the wholesaler
6	Purpose of selling	A wholesaler sells goods for resale purpose.	A retailer sells goods for consumption or use
7	Location	He operates his business in big commercial cities.	He operates even in a small village

Retailers provide the following services to the wholesalers.
(i) Help in Distribution:
Retailers relieve the manufacturers and wholesalers of the burden of collecting and executing a large number of small orders from various consumers.
(ii) Market information:
Retailers supply valuable information to wholesalers about changes in tastes preferences, fashion, etc. of consumers. '
(iii) Largescale Operation:
(1) The manufacturers and wholesalers are Freed from the trouble of making individual sales to consumers in small quantities.
(2) This enables them to operate on, at relatively large scale and thereby fully concentrate on their other activities.
(iv) Help in promotion:
(1) Retailers participating in the promotional activities carried by the manufacturers and wholesalers such as short time offers Coupons, free gifts, sales contests, etc.
(2) Retailers help in promoting the sale of the products.
(v) Personal Attention:
The retailer is able to provide more personal attention to his customers than the wholesaler is, he gives special services on the spot when the articles require minor repairs.