READING (C)

Wholesaling is part of the marketing system which provides channels of distribution that are used to bring goods to market. Most manufactured consumer goods are marketed through an indirect channel, this might be from the manufacturer to the wholesaler to the retailer to the consumer, or through more complicated channels. However, in general, wholesalers deal in products that are to be resold by retailers to consumers. Wholesaling is mostly a field of small business, although there is a growing chain movement in the United States. About a quarter of wholesaling units account for one-third of total sales.
Two-thirds of the wholesaling middlemen are merchant wholesalers who take title to the goods they deal in. There are also agent middlemen who negotiate purchases or sales or both, but they don't take title to the goods they deal in. They sometimes take possession, though, These agents don't earn salaries. They receive commissions; this is a percentage of the value of the goods they sell.
Wholesalers simplify the process of distribution. For example, the average supermarket stocks 5.00 items in groceries alone; a retail druggist may have more than 6,00 items. Since a wholesaler handles a large assortment of items from numerous manufacturers, he greatly reduces the problem of both manufacturer and retailer. The storekeeper does not have to deal directly with thousands of different people. He may have a well-stocked store and deal with only a few wholesalers.


1. Which statement is TRUE according to the text?
    A. Agent middlemen receive large salaries.
    B. A wholesaler usually deals with retailers.
    C. Distribution of goods requires a large capital.
    D. All consumer goods are directly sold to consumers.
    E. Storekeepers usually buy the items directly from the manufacturers


2. What is the topic of paragraph 3? It is ...
    A. the right of an agent middleman in the business
    B. the goods sold or bought by an agent middle-
    C. the percentage given to an agent middleman as commission
    D. the difference between, a merchant wholesaler and an agent middleman
    E. how the agent middlemen negotiate with retailers over the goods they deal in

3. The main idea of the first paragraph is ...
    A. There are many ways to distribute goods to consumers.
    B. Wholesaling is a way of marketing goods to consumers.
    C. Wholesaling makes the distribution of goods complicated.
    D. The only channel of distribution is from wholesalers to retailers!
    E. Marketing a manufactured product is the responsibility of a wholesaler;


4. Which of the following sequences is a direct channel of distribution?
    A. Manufacturer – wholesaler – retailer – consumer
    B. Manufacturer – wholesaler – consumer
    C. Manufacturer – wholesaler – retailer
    D. Manufacturer – retailer – consumer
    E. Manufacturer – consumer


5. Which of the following sequences is a direct channel of distribution?
    A. Manufacturer – wholesaler – retailer – consumer
    B. Manufacturer – wholesaler – consumer
    C. Manufacturer – wholesaler – retailer
    D. Manufacturer – retailer – consumer
    E. Manufacturer – consumer