O-LevelCommerceWholesale trade7100/12 · Oct/Nov 2024 · Q81 Mark

The diagram shows three channels of distribution for goods. [Figure 8.1] Which statement best explains why wholesalers have been eliminated from channels 2 and 3?

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AManufacturers are producing goods that are perishable.

BManufacturers are selling goods that do not require storage.

CManufacturers are trying to reduce costs and increase profits.

DManufacturers want to control the supply of goods.

✓ Correct answer

C: Manufacturers are trying to reduce costs and increase profits.

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Topic: Wholesale trade, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2024 Paper 1 Variant 2, question 8.

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