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 Form 3 business studies revision questions and answers set 4

Highlight six problems a manufacturer is likely to face when the wholesalers is eliminated from the chain of distribution

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Answer Text:
-Storage problems of goods may arise hence increased costs of production
-He may need to organize his own transport hence increased transportation expenses
-He may not sell his goods faster given that retailers may not buy in bulk
-He will be expose to many risks related to production, storing, distribution and falling of prices
-Financial problems, since the wholesaler provides ready cash
-He will need to prepare goods for sale him/ her self