Which of the following statements is true of independent wholesalers?
A)Merchant wholesalers comprise about 80 percent of all wholesalers.
B)Merchant wholesalers do not take legal ownership of the goods they distribute.
C)Agents take legal possession, or title, of the goods they distribute.
D)Independent wholesalers cannot represent multiple producers.

Question

Quizplus · Accepted Answer

Independent wholesalers refer to those who are not affiliated with any specific manufacturer or producer. According to industry estimates, about 80% of all wholesalers fall into the category of merchant wholesalers (who take legal ownership of goods and sell to other businesses or retailers) and are thus independent wholesalers. Therefore, statement A is correct. Statement B is incorrect because merchant wholesalers do take legal ownership of the goods they distribute. Statement C is incorrect because agents do not take legal possession of goods but act on behalf of manufacturers or producers to secure sales. Statement D is incorrect because independent wholesalers often represent multiple producers to offer a variety of products to their customers.

Which of the Following Statements Is True of Independent Wholesalers