Which of the following activities do wholesalers perform?
A. Store inventory
B. Supply capital
C. Reduce credit risk
D. Provide market information
E. All of the above
Answer: (E) Wholesalers can store inventory (A) to reduce a producer's need to carry large stocks, thus cutting the producer's warehousing expenses; supply capital (B) to reduce a producer's need for working capital by buying the producer's output and carrying it in inventory until it is sold; reduce credit risk (C) by selling to customers the wholesaler knows and taking the loss if these customers do not pay; and provide market information (D) as an informed buyer and seller closer to the market. The wholesaler reduces the producer's need for market research. All of the above (E) is the correct answer.