Distribution of Goods and Services
18 Grade 9 Pre-Technical Studies questions on Distribution of Goods and Services, with worked marking schemes. 18 questions are available on this topic in full.
Question 1
3 marksState three functions performed by a wholesaler in the distribution of goods.
(3 marks)
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1 markA retailer in a remote village complains that fresh milk spoils before reaching customers. Improving which channel-of-distribution support service would best solve this problem?
A. Increasing the price of the milk
B. Better transport and cold storage (refrigerated handling)
C. Reducing the number of customers
D. Removing the product label
(1 mark)
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1 markIn the chain of distribution, the trader who buys goods in large quantities from the manufacturer and sells them in smaller lots to retailers is the
A. wholesaler
B. hawker
C. producer
D. consumer
(1 mark)
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3 marksExplain why some producers of consumer goods prefer to use middlemen in the distribution of their products.
(3 marks)
Marking scheme
Any three (1 mark each): middlemen have wider networks reaching many consumers/areas; they reduce storage and transport burden on the producer; they provide market information; they take on risk of holding stock; they allow the producer to concentrate on production; they finance the distribution through bulk buying.
Question 5
1 markWhich of the following is a service, rather than a good, being distributed to consumers?
A. A pair of shoes
B. A bag of maize flour
C. Transport offered by a matatu sacco
D. A bottle of cooking oil
(1 mark)
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1 markA farmer in Kericho sells his tea to a factory, which processes and sells it to wholesalers, then to retailers, and finally to consumers. This sequence is BEST described as a
A. production line
B. budget cycle
C. supply of labour
D. chain of distribution
(1 mark)
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1 markPerishable goods such as vegetables are often sold through a short distribution channel MAINLY because
A. they are very expensive to produce
B. they are only sold abroad
C. they cannot be stored at all
D. they must reach consumers quickly before they spoil
(1 mark)
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4 marksA trader in Nairobi wants to distribute fresh fish from Lake Victoria. Explain two challenges she may face in distributing this product.
(4 marks)
Marking scheme
Any two, each explained (2 marks each): perishability - fish spoils quickly and needs refrigeration/quick transport; long distance/poor roads - increases transport cost and delays delivery; high transport/storage costs reduce profit; price fluctuation - demand and supply may vary; competition from other traders. (1 mark identify + 1 mark explanation.)
Question 9
1 markA manufacturer of soap chooses to sell directly to large supermarkets instead of through wholesalers. The MAIN advantage of this channel is that
A. the manufacturer can sell large volumes and reduce the number of middlemen
B. the supermarket becomes the producer
C. the goods reach every remote village easily
D. consumers pay more for the soap
(1 mark)
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1 markA cooperative society collects milk from many small dairy farmers and sells it in bulk to a processor. In the chain of distribution the cooperative is acting mainly as
A. a middleman linking producers to the processor
B. a government regulator
C. the final consumer
D. the manufacturer of the milk
(1 mark)
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4 marksDraw or outline the chain of distribution for a manufactured product such as biscuits, naming the four main stages in order.
(4 marks)
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6 marksA farmer harvests tomatoes and sells them to a wholesaler, who then supplies retailers, and the retailers finally sell the tomatoes to consumers.
(a) Define the term 'channel of distribution'. (2 marks)
(b) List, in the correct order, the four parties through which the tomatoes pass from the farmer to the final buyer in this case. (4 marks)
(6 marks)
Marking scheme
(a) A channel of distribution is the path or route through which goods (and services) move from the producer to the final consumer, including the intermediaries involved. (2 marks) (b) In order (1 mark each): 1. Producer (the farmer) 2. Wholesaler 3. Retailer 4. Consumer (the final buyer)
Question 13
1 markA shopkeeper in a village buys sugar in small quantities and sells it directly to households. This trader is a
A. manufacturer
B. retailer
C. wholesaler
D. broker
(1 mark)
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1 markA dairy company delivers fresh milk straight from the plant to consumers' doorsteps without using a shop. This is an example of
A. direct distribution from producer to consumer
B. international trade
C. wholesale trade
D. barter trade
(1 mark)
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1 markA farmer harvests tomatoes and sells them to a wholesaler, who then sells to retailers in the town market. In this chain of distribution, the role of the wholesaler is to:
A. Grow the tomatoes for sale
B. Sell directly to the final consumer in small amounts
C. Buy goods in large quantities and break them into smaller lots for retailers
D. Process the tomatoes into sauce
(1 mark)
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1 markWhich function of a wholesaler helps a retailer avoid tying up too much money in stock?
A. Breaking bulk into smaller quantities
B. Manufacturing the goods
C. Consuming the goods
D. Setting government taxes
(1 mark)
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1 markA farmer sells maize to a wholesaler, who then sells it to several retailers near the market. In the chain of distribution, what is the role of the wholesaler?
A. Selling goods directly to final consumers only
B. Growing the maize that is sold
C. Buying goods in large quantities from producers and selling in smaller quantities to retailers
D. Transporting consumers to the market
(1 mark)
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4 marksA farmer produces tomatoes and wants them to reach customers in a town market. He learns that goods move from the producer to the final consumer through a chain.
(a) Explain the meaning of distribution of goods. (2 marks)
(b) Arrange the following members of a simple chain of distribution in the correct order from producer to consumer: retailer, wholesaler, producer, consumer. (2 marks)
(4 marks)
Marking scheme
(a) Distribution of goods is the process of moving goods from the producer (where they are made/grown) to the final consumer through various channels and middlemen so that the goods are available where and when they are needed. (2 marks) (b) Correct order: Producer to Wholesaler to Retailer to Consumer. (2 marks; award full marks only if the whole order is correct)
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