Question

Who is the first one to buy goods in large quantities?
A. Retailer
B. Consumer
C. Wholesaler
D. Transporter

Answer 1

Hint: The formal process of buying goods and services is called purchasing , it varies from organization to organization. These are the items which satisfy human wants and give utility. Large numbers of goods are brought from different producers. Bulk purchasing of goods in larger quantities are usually sold to small traders.

Complete answer:
The goods sold in large quantities from various producers is the Wholesaler who is the first one to buy goods in larger quantities and sells them to retailers.Traders are the people in between producer and the consumer in the market. Wholesaler is the one who buys goods and services in large quantities at a low unit price to retail merchants and then sells these goods to small traders called retailers. The wholesaler usually accepts slightly lower prices for each unit but also maximizes profit , if the retailer accepts to purchase at greater quantity of units. Usually a wholesaler represents a factory , the economy of scale is used by the factory owner in order to increase profit as the quantity of selling increases. Larger quantities of products are obtained at a lower price and sold to other businesses .There are a number of factors which are involved in the practice of wholesale buying and selling , it includes buying , selling and distribution of products. Between manufacturers and retailers , wholesaling is the most common type.

Hence, the correct answer is option (C).

Note: Wholesalers receive many discounts due to volume buying. The important merit of purchasing from a wholesaler is that it reduces the cost of doing any business. Buying of goods in bulk generally leads to making more money. Depending on the business type , the product supply chain between wholesalers and manufacturers can vary.