Select the True Statement About Wholesaling

question 155

Multiple Choice

Select the true statement about wholesaling.

• A)Wholesaling activities must be performed during distribution of all goods,whether or not a wholesaling institution is involved.
• B)Warehouses are necessary in order for the wholesaling function to be completed.
• C)Only wholesaling establishments can perform wholesaling activities.
• D)Wholesaling is an inefficient process that should be eliminated from the marketing channel.
• E)The biggest problem with the wholesaling process is that inefficient wholesalers can thrive,at the expense of consumers.

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Definitions:

Regressive Tax

At the individual level, a tax whose average tax rate decreases as the taxpayer’s income increases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) falls as GDP rises.

Income Groups

Categories of individuals or households segmented by income levels, often used for statistical analysis and policy design.

Proportional Tax

At the individual level, a tax whose average tax rate remains constant as the taxpayer’s income increases or decreases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) remains constant as GDP rises or falls.

Benefits-received Principle

The concept that the amount of taxes an individual pays should be directly proportional to the level of benefits or services they receive from the government.