Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.

Question

Quizplus · Accepted Answer

Wholesalers typically take title (ownership) of the products they purchase from manufacturers and bear the risk of any negative events, such as theft, damage, spoilage, or obsolescence, that may occur to the products during the distribution process. This allows manufacturers and retailers to avoid these risks and focus on their core business activities.

Wholesalers Absorb Risk by Taking Title and Bearing the Cost