Functions of credit to the wholesaler and retailer. - SS2 Commerce Past Questions and Answers - page 1

Financing business expansion

By aligning expenses with sales revenue

Improved supplier relationships

By offering seasonal promotions

Offering flexible payment options

The function of credit to the wholesaler is to provide financing for business expansion, enabling them to purchase inventory, expand operations, and foster supplier relationships.

Credit allows retailers to generate revenue from sales before making payments to suppliers, ensuring that expenses are aligned with sales revenue and enabling them to reinvest in the business.