(a)State four functions of wholesaler to a retailer.
(b) Explain five advantages of small scale retail business over a large scale business.
Explanation
(a) functions of a wholesaler to a retailer:
(i) Provides the retailers with a variety of goods
(ii) Provides credit facilities
(iii) Advises the retailer on new trends in the market.
(iv) Breaks bulk for the retailer.
(vi) Grades and packages goods.
(vii) Advertises goods on behalf of the retailer.
(viii) Provision of warehouse facilities.
(b) Advantages of small scale business over large scale business:
(i) Quick decision:The small trader can make decisions on matters that affect his business faster than the large scale retailer.
(ii) The capital required to start and run a small scale business is smaller and will be easy to raise than large scale retail business.
(iii) The small retailer can draft in his family to assist him but the large scale retailer had to employ competent hand which will be costly.
(iv) Small scale retailers offer personal attention which atttract more customers to the small retailer than the large scale retailers.
(v) The possibility of credit facilities attract more customers to the small scale retailers because he knows the customer than large scale trader.
(vi) The ability to sell in the smallest unit (say a wrap of salt) also attracts more customers to the small scale retailers.
(vii) Operation period is an added advantage to the small trader, he can open seven days a week and even to late hours unlike the large scale outlet.