O-LevelCommerceWholesale trade7100/11 · Oct/Nov 2013 · Q111 Mark

What is the advantage to a manufacturer of using the channel of distribution shown? manufacturer → wholesaler → retailer → consumer

AThe goods reach the consumer quickly.

BThe manufacturer must store the goods.

CThe manufacturer's distribution costs are reduced.

DThe selling of goods is controlled by the manufacturer.

✓ Correct answer

C: The manufacturer's distribution costs are reduced.

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Topic: Wholesale trade, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2013 Paper 1 Variant 1, question 11.

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