KCSE Business Studies Topical Questions and Answers - ATIKA SCHOOL

State four consequences of eliminating wholesalers from the chain of distribution

5/11/2021

State four consequences of eliminating wholesalers from the chain of distribution. (4mks)

Four consequences of eliminating wholesalers from the chain of distribution.

Manufactures may be forced to open up additional distribution outlets, which might increase their costs thereby lowering their profits.
The removal of wholesalers will in effect decrease the cost of distribution, hence higher profits to the producers.
Producers will not specialize since they will also be carrying out the distribution function, hence they will not enjoy the economic advantage of specialization.
Prices may be unstable in their absence since they help in stabilizing prices by storing large quantities of the produce.
Producers may need to establish additional storage facilities, which were previously provided by wholesalers, hence requiring them to raise more capital.
Retailers will be forced to buy in bulk thereby requiring them to have more capital, which may not be available.
Retailers may be forced to pay cash thereby requiring them to increase their capital base.
Manufacturers may be forced to break bulk, since the retailers may not be able to buy in large quantities.
Retailer may be forced to establish warehouse, which would require additional investment.

Highlight four roles played by intermediaries in distribution chain

21/9/2021

Roles played by intermediaries in distribution chain

Accumulating bulk
Breaking bulk
Reducing transaction between producers and consumers
Risk taking
Providing finance
Passing information
Product promotion
Transport and storage
Availing goods to consumers
Providing a variety

Related Question:

highlight-four-roles-played-by-the-broker-in-the-chain-of-distribution-4-marks.html

Highlight four roles played by intermediaries in distribution chain

Highlight four roles played by the broker in the chain of distribution. (4 marks)

14/12/2020

Roles played by the broker in the chain of distribution

Roles played by the broker in the chain of distribution include:

Linking the buyer and the seller.
Bargaining for the principal.
Passing information between the principal and the client.
Facilitating access to a variety of goods and services to the buyer.
Providing an avenue for the seller to access many buyers.
Giving advice to buyers and sellers on market trends.

Highlight four roles played by the broker in the chain of distribution

Related Business Studies Quiz and Answers on Chain of Distribution Form 3 Level

Outline four factors that may make a producer to by-pass the wholesaler when distributing goods. (4 marks)

3/12/2020

Factors that may make a producer to by-pass the wholesaler when distributing goods

Having own retail outlet.
Dealing in perishable goods like bread which require shorter channels.
Dealing in technical goods which require elaborate after sales services.
Consumers and retailers buying in large quantities.
Need to keep price of goods low.
Limited geographical spread of the market.
Government policy.
When the production is in small quantity.
Where the producer has enough storage facilities.
When goods are produced on order

Factors that may make a producer to by-pass the wholesaler when distributing goods

Describe five channels of distribution that a Kenyan manufacturer would use to ensure her goods reach consumers in another country. (10 marks)

29/11/2020

Channels of distribution that a Kenyan manufacturer would use to ensure her goods reach consumers in another country

channels of distribution that a Kenyan manufacturer would use to ensure her goods reach consumers in another country

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