A large food-processing company distributes its packaged goods nationwide using independent wholesalers. Which of the following functions performed by these wholesalers represents a direct service to the producer rather than to the retailer?
- Financing production by purchasing in bulk and paying promptlyCevap
- BBreaking down large consignments into smaller units suitable for resale
- CGranting short-term credit facilities and stocking a variety of complementary goods
- DIssuing credit notes to rectify overcharges on commercial sales invoices
Cevap
Financing production by purchasing in bulk and paying promptly
Wholesalers assist producers by purchasing goods in large quantities, often ahead of actual retail demand, and paying promptly. This relieves the producer of holding excessive stock and provides liquidity to finance ongoing manufacturing operations.
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Wholesaler Functions to Producers vs. Retailers