Q.Explain any three characteristics of Wholesalers.

Wholesalers buy in bulk from producers and sell in smaller quantities to retailers, deal in a limited line of goods, need large capital, and act as the vital link between manufacturers and retailers.

In the Tamil Nadu HSC Commerce (Types of Trade) syllabus, wholesale trade means buying goods in large quantities from producers and selling them in comparatively smaller quantities to retailers. Its important characteristics (any three required) are:

• Bulk buying and bulk breaking: The wholesaler purchases goods in large quantities directly from manufacturers and sells them in smaller quantities to retailers.
• Limited line of goods: A wholesaler generally specialises in one type or a limited range of products rather than dealing in all kinds of goods.
• Large capital requirement: Because of bulk purchases and holding of stock, the wholesaler needs substantial capital.
• Link between producer and retailer: The wholesaler connects the manufacturer with numerous retailers. …