December 10, 2020

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Give any four categories of goods that are suitable for direct distribution from producers to retailers.

Goods suitable for direct distribution. Goods which require sufficient after –sales service eg electronics Goods which the manufacturer wants to exercise some control during distribution Goods with high profit margin and the retailers purchase in bulk Goods which are very expensive eg motor vehicles Goods which are highly perishable eg milk. Branded goods and goods which are widely advertised eg coca-cola.

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Highlight any four benefits that accrue to a seller who uses personal selling as a method of sales promotion.

Benefits of personal selling. Creates a personal touch between the seller and the buyer The seller explains to the buyer since he/ she can ask questions regarding the products The seller gets to know how to improve the quality of his products depending on lamentations made by the buyer The buyer knows exactly whom to turn to incase of any problem. The seller can sell on credit to the credit worth customers

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Give any four reasons that may lead to dishonour of a cheque.

Why cheques are dishonoured Insufficient funds Post – dated cheque Stale cheque. Amount in words differ from amount in figures. Signature of the account holder may differ from the specimen in the bank Alterations that have not been signed against The drawer has stopped payment of the cheque. If any one of the requirements for a properly drawn cheque is missing or wrongly written. A crossed cheque will be dishonoured if the depositor does not abide by the conditions of the crossings

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