INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a. wholesalers do not take title to the goods.
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b. it enables them to control channel activities.
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Ç, wholesalers usually buy in large quantities.
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d. it enables them to reach large retailers directly.
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Detailed explanation-1: -Which is an advantage for producers in using the producer to wholesaler to retailer to consumer distribution channel? It enables them to control channel activities. Wholesalers do not take title to the goods.
Detailed explanation-2: -Producer → Retailer → Consumer (One-level Channel) Retailers, like Walmart and Target, buy the product from the manufacturer and sell them directly to the consumer. This channel works best for manufacturers that produce shopping goods like clothes, shoes, furniture, tableware, and toys.
Detailed explanation-3: -Wholesalers generally make bulk purchases, buy from the producer, and divide the goods into smaller packages to sell to retailers. The retailers then sell the goods to the end buyers. The two-level channel is suitable for more affordable and long-lasting goods with a larger target market.
Detailed explanation-4: -Advantages of a distribution network for manufacturers Some of the main benefits of distribution network is reduced costs, more transparency and collaboration, wider customer reach and faster growth. Joining a distribution network might sound like a big and complex operation.