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Functions of credits to retailer and wholesalers. - SS2 Commerce Past Questions and Answers - page 1

1

What function of credit allows retailers to offer seasonal or promotional sales?

 

A

Cash flow management

 

B

Business growth

 

C

Customer satisfaction

 

correct option: c

Customer satisfaction

 

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2

What is one function of credit for wholesalers?

 

A

Inventory acquisition

 

B

Cash flow management

 

C

Customer support

 

correct option: a

Inventory acquisition

 

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3

How does credit help retailers manage their cash flow?

 

A

 By expanding their physical stores

 

B

By attracting new customers

 

C

By delaying payments to suppliers

 

correct option: c

By delaying payments to suppliers

 

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4

What can wholesalers use credit for?

 

A

Supplier relationships

 

B

Inventory sales to retailers

 

C

Business expansion

 

correct option: c

Business expansion

 

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5

What function of credit benefits both retailers and wholesalers?

 

A

Cash flow management

 

B

Customer satisfaction

 

C

Supplier relationships

 

correct option: a

Cash flow management

 

Users' Answers & Comments
6

Explain one function of credit to retailers in simple terms.

 

One function of credit to retailers is that it allows them to acquire inventory without immediate payment, enabling them to stock their stores and meet customer demand.

 

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7

How does credit benefit wholesalers in managing their cash flow?

 

Credit allows wholesalers to sell inventory and generate revenue before making payments to suppliers, helping them align their expenses with their sales and manage their cash flow effectively.

 

Users' Answers & Comments
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