Limited-function wholesalers:
A. usually cost more than single-line wholesalers.
B. include manufacturers’ agents.
C. own (take title to) the products they sell.
D. usually cost more than specialty wholesalers.
E. All of these alternatives are correct for limited-function wholesalers.
The correct answer and explanation is :
The correct answer is:
C. own (take title to) the products they sell.
Explanation:
Limited-function wholesalers are wholesalers who provide only some marketing services, rather than the full range of services offered by full-service wholesalers. These services may include only storage and transportation, or only sales support. However, a key characteristic of limited-function wholesalers is that they take title to the goods, meaning they own the products while they are in their possession, even though they may not perform all other marketing functions such as credit, promotion, or market research.
Let’s break down the answer choices:
- A. Usually cost more than single-line wholesalers:
This is not correct. Cost isn’t determined by whether a wholesaler is limited-function or single-line. In fact, single-line wholesalers (those that carry a narrow range of products but a deep assortment within that range) can be either full-service or limited-function. Costs are more related to services provided than to the number of product lines. - B. Include manufacturers’ agents:
Incorrect. Manufacturers’ agents are independent agents who do not take title to the goods and work on commission. Therefore, they are not wholesalers but part of agent middlemen. - C. Own (take title to) the products they sell:
Correct. This is the defining feature of limited-function wholesalers. While they may not offer services like financing or marketing, they do take ownership of the goods. - D. Usually cost more than specialty wholesalers:
Also incorrect. Cost comparisons like this are not universally true and vary based on specific business models, services provided, and efficiency. - E. All of these alternatives are correct:
Incorrect, because only C is correct.
In summary, limited-function wholesalers take title to the goods, just like full-service wholesalers, but they offer a narrower range of services. Their focus is often on efficiency and cost savings, serving clients who don’t need or want the full array of wholesaling functions.