Select the true statement about wholesaling.
A)Wholesaling activities must be performed during distribution of all goods,whether or not a wholesaling institution is involved.
B)Warehouses are necessary in order for the wholesaling function to be completed.
C)Only wholesaling establishments can perform wholesaling activities.
D)Wholesaling is an inefficient process that should be eliminated from the marketing channel.
E)The biggest problem with the wholesaling process is that inefficient wholesalers can thrive,at the expense of consumers.

Question

Quizplus · Accepted Answer

Wholesaling activities refer to the functions that are involved in the distribution of goods from manufacturers to retailers or other businesses. These activities may be performed by wholesalers or retailers or any other intermediary involved in the distribution process. Therefore, option A is the true statement about wholesaling. Option B is incorrect as although warehouses may be used by wholesalers, they are not necessary for the completion of the wholesaling function. Option C and D are also incorrect as any business involved in distribution can perform wholesaling activities, and wholesaling is a crucial part of the marketing channel. Option E is partially correct as inefficient wholesalers can have negative effects on consumers, but it is not the only problem associated with wholesaling.

Select the True Statement About Wholesaling