JAMB 2021 Economics · Question 20

Which of these is not usually the function of a wholesaler?

Options

  1. A.Branding
  2. B.Storage
  3. C.Transport
  4. D.Advertising

Answer: A. Branding

Explanation written with AI and checked against the answer key

Step 1: Analyze the question We are asked which option is NOT usually a function of a wholesaler. A wholesaler is an intermediary who buys goods in bulk from producers and sells them in smaller quantities to retailers.

Step 2: Recall the concept Typical functions of a wholesaler:

  • Buying in bulk from manufacturers and breaking bulk into smaller lots for retailers
  • Storage/warehousing: holding goods until retailers need them
  • Transportation: delivering goods to retailers
  • Advertising/promotion: helping to promote the producer's goods to retailers
  • Granting credit to retailers
  • Giving market information to producers and retailers
  • Risk bearing: bearing the risk of price changes, spoilage and theft

Step 3: Check each option

  • A. Branding: Branding (creating the name, label, logo and identity of a product) is mainly the job of the manufacturer/producer. Wholesalers usually sell goods already branded, so this is not a typical wholesaler function.
  • B. Storage: A core wholesaler function. ✔
  • C. Transport: Wholesalers move goods from producers to retailers. ✔
  • D. Advertising: Wholesalers commonly assist in promoting goods. ✔

Step 4: Answer

Tip: Remember that wholesaler functions are about moving and holding goods (bulk-breaking, storage, transport, credit, information). Anything to do with creating or designing the product (such as branding and packaging design) belongs to the manufacturer.

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