Maxima is a wholesaler who buys an earphone from the manufacturer and sells it directly to Mahima, a consumer. After a few months, Mahima decides to sell her earphones.

Analyse which of the following are true.

Consumption process was done by Mahima.

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Distribution process was done when Maxima sold it to Mahima.

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There was no distrubtion process as no retailer is involved.

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Distribution process was done by Mahima when she resold the earphones.

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Solution

The correct option is B Distribution process was done when Maxima sold it to Mahima.
When a wholesaler directly sells the goods to the consumer or sells it through a retailer, it is considered as a distribution process. Mahima buys the goods from Maxima to fulfill her needs. This is the consumption process.

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A manufacturer sells a washing machine to a wholesaler for Rs.15,000. The wholesaler sells it to a trader at a profit of Rs.1,200 & the trader in turn sells it to a consumer at a profit of Rs.1,800.

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Maxima is a wholesaler who buys an earphone from the manufacturer and sells it directly to Mahima, a consumer. After a few months, Mahima decides to sell her earphones. Analyse which of the following are true.

Maxima is a wholesaler who buys an earphone from the manufacturer and sells it directly to Mahima, a consumer. After a few months, Mahima decides to sell her earphones.

Analyse which of the following are true.