Pearson Edexcel IGCSE · Commerce

Wholesale: Practice Questions

5 multiple-choice questions marked as you go, and 1 written questions with worked solutions. All on Wholesale.

6 questions7 marksFree, no account

Question 1

1 mark

Which function of a wholesaler involves purchasing large quantities of goods from a manufacturer and selling them in smaller, manageable quantities to a retailer?

Question 2

1 mark

How does a cash-and-carry wholesaler primarily differ from a general wholesaler?

Question 3

1 mark

A wholesaler purchases 5,000 units of a specialized component from a manufacturer at a cost of $ \$50 $ per unit. The wholesaler manages the storage and insurance of these units until they are sold to small retailers over a period of six months. During this time, the market price of the components fluctuates significantly.

Which function of the wholesaler is primarily being demonstrated by the wholesaler's willingness to hold the inventory despite potential market price changes and physical deterioration?

Question 4

1 mark

What is the primary role of a voluntary chain in the wholesaling sector?

Question 5

1 mark

A wholesaler provides trade credit to a small retailer. What is the most significant impact of this on the retailer's business?

Question 6

2 marks

Define the term breaking bulk and explain why it is a vital service provided by wholesalers to small retailers.

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