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§1 A person who buys in bulk, §1 luggage compartment, §2 multiple store, §3dispenser, §3 tradesman, §3 producer, §4 storehouse, §5 assortment of goods

  1. Find the definitions of these words and phrases in the text.

  1. the amount of business, usually expressed in terms of gross revenue, transacted during a specified period

  2. carrying charges

  3. the amount produced, as in a given period

  4. space or area reserved for storing

  5. willingness and ability to purchase goods and services

  1. Look for details in the text and choose the proper option.

        1. Buy in quantities to suit turnover and obtain that variety of stock is …………. .

    1. an essential feature of transportation

    2. an essential feature of distribution

    3. not compulsory

2. Firms engaged in large-scale retail trade is large enough …………………. .

i. to buy in large quantities

ii. to buy what they want

iii to sell in bulks

3. The wholesalers reduce the number of parcels ……………………… .

i. to be transported by agencies

ii. to be sold by retailers

  1. to be sent out by manufacturers

  1. Someone must accumulate large stocks when the commodity is available and release it gradually to the market as demand requires, thereby …………………… .

  1. helping to make the economic system run more smoothly

ii. helping retailers to sell successfully

iii. helping wholesalers to redistribute goods

  1. The wholesaler who holds stocks ……….. than the average retailer.

i. requires less capital

ii. requires no capital

  1. requires much more capital

  1. ………………………… is required as well as the ability to assess their quality.

  1. Expert knowledge of the commodities and their market

  2. Expert knowledge of goods and services

  3. Audit knowledge of the commodities and their market

  1. Which of the three is the key message of the text?

      1. The wholesaler buys stock from the manufacturer, in large quantities and sells in small quantities to the retailer. The holding of stocks is an important function of the wholesaler. The wholesaler also helps to finance the retailer by allowing him credit, for many retailers only operate on a small amount of capital. The wholesaler is always in close touch with the market. The wholesaler sometimes provides retailers with supplementary services such as packaging, grading and so on.

      2. The main functions of the general wholesaler are the breaking of bulk, the holding of stocks, financing, expert knowledge of commodities, markets and demand and preparation of commodities for sale.

      3. Firms engaged in large-scale retail trade can afford to buy direct from the manufacturer. The wholesalers reduce the number of parcels to be sent out by manufacturers. The important economic consequence of stock holding is that it tends to reduce price fluctuations. Expert buyers and sellers are needed to the retail customers. The wholesaler is in close touch with the market, the wholesaler who holds stocks requires much more capital than an average retailer.

Vocabulary Focus

  1. Fill in the table with the missing derivatives from the text.

Nouns

Verbs

Adjectives/Adverbs

manufacture

distribute

relate

fluctuating

judgement

disposition

store

consider

  1. Match the halves of the phrases.

1. passing them on

a) by wholesalers

2. keeping him

b) informed

3. to be in close touch

c) for the storage

4. operate on

d) with the market

5. acting in

e) a steady demand

6. release it

f) to the retailer

7. accumulate

g) gradually

8. satisfy

h) a financial capacity

9. make provision

i) large stocks

10. to be split up

j) only a small amount of capital

  1. Paraphrase the following phrases in italics, use the expressions from ex. X.

    1. He died without a will, though he had gathered three thousand pounds.

    2. They are easily divided into parties by intrigue.

    3. I wish to be freed from my contract.

    4. Many retailers function on only a small amount of capital.

    5. The wholesaler copes with the market.

    6. The wholesaler notified the manufacturer about the demand for his commodity.

A springboard for discussion

  1. What would happen if there were no wholesalers?

  2. What does the process of delivery of final produce include? Follow all the steps.

For example, a factory produces windows and then builders take them to a construction site and install them. This process also includes wholesale firms, shops, advertising agencies, companies testing the quality of glass and plastic, a transportation company and construction firms, to say nothing of subcontractors who serve the entire team.

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