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O-LevelCommerceWholesale tradeOct/Nov 2024Paper 1 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?

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

The correct answer is C: Manufacturers are trying to reduce costs and increase profits.

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This O-Level Commerce Question

Topic

This multiple-choice question tests Wholesale trade in O-Level Commerce (syllabus code 7100). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Commerce Oct/Nov 2024 examination, Paper 1 Variant 2.

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