O-LevelCommerceWarehousing7100/12 · May/June 2022 · Q241 Mark

What is the most likely reason for a supermarket chain to use warehousing?

AIt helps to avoid tying up working capital in unused stock.

BIt needs to maintain spare stock for production.

CIt purchases stock in bulk from overseas suppliers.

DIt wants to reduce theft of stock from its shops.

✓ Correct answer

C: It purchases stock in bulk from overseas suppliers.

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Topic: Warehousing, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2022 Paper 1 Variant 2, question 24.

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