11th Class Business Studies Internal Trade Question Bank Internal Trade (Higher)

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    Case Study 5
    Sanjeev and Rajeev are two friends. They are arguing on channel of distribution. Sanjeev claims that wholesalers are of no use and must be eliminated from chain of distribution. But Rajeev opines that wholesalers play a significant role in distribution. He claims that wholesaler provides many facilities to manufacturers and retailers. Rajeev is not convinced. He feels that middlemen only add to cost and hence goods should reach from manufacturer t final consumer directly.
    Q.2      Who of the two is right in your opinion and why?


    Ans.     Rajeev is right because it is simply impossible that consumers travel tillfactory to get their needs in small quantities directly.

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