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Question

By keeping stock of goods in anticipation of demand, a retailer is performing which of the following functions?

A
Grading and Packing
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B
Risk-bearing
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C
Transportation
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D
Sales promotion
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Solution

The correct option is B Risk-bearing
Risk-Bearing - The ability of large firms to spread risks over a large number of investors. This can result in the diversification of location or production plant-specific risks thus reducing the effective risk facing investors.

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