NIOS Class 10 Business Studies Chapter 13 Channels of Distribution

NIOS Class 10 Business Studies Chapter 13 Channels of Distribution Solutions to each chapter is provided in the list so that you can easily browse throughout different chapters NIOS Class 10 Business Studies Chapter 13 Channels of Distribution Notes and select need one. NIOS Class 10 Business Studies Chapter 13 Channels of Distribution Question Answers Download PDF. NIOS Study Material of Class 10 Business Studies Notes Paper 215.

NIOS Class 10 Business Studies Chapter 13 Channels of Distribution

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Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Business Studies Chapter 13 Channels of Distribution Solutions, NIOS Secondary Course Business Studies Solutions for All Chapter, You can practice these here.

Chapter: 13


Intext Questions 13.1

Complete the following statements using suitable words: 

(i) Route or path along which goods move from the producer to the ultimate consumer is known as __________. 

Ans:- Channel of distribution.

(ii) A retailer acts as a __________ between the wholesaler and the ultimate consumers. 

Ans:-  Middleman.

(iii) Where goods are sold through middlemen, it is known as ___________ channel of distribution. 

Ans:- Indirect.

(iv) Where goods are sold directly to consumers without using services of middlemen, it is known as ___________ channel. 

Ans:- Direct.

(v) In the direct channel, producers sell goods to customers through door-to-door salesmen and through their own __________.

Ans:- Retail stores.

Intext Questions 13. 2

Which of the following statements about wholesalers are true and which are false? 

(i) They buy goods directly from retailers, for sale to customers. 

Ans:- False.

(ii) They generally provide credit facility to producers as well as to retailers. 

Ans:- True.

(iii) They collect goods in large quantities and store them safely till they are sold out. 

Ans:- True.

(iv) Wholesalers require small amount of capital investment for their business. 

Ans:- False.

(v) They are located at a number of places in different markets near the customer. 

Ans:- False.

(vi) They buy goods of a large variety in small quantities for sale.

Ans:- False.

Intext Questions 13.3

I. From the sentences given below, mark (W) for those belonging to wholesalers and (R) for retailers in the boxes given against each: 

(i) Selling goods in small quantities ( ) 

Ans:- R.

(ii) More capital required ( ) 

Ans:- W.

(iii) Sale of goods for resale ( ) 

Ans:- W.

(iv) Dealing in a limited range of goods only ( ) 

Ans:- W.

(v) Direct contact with consumers ( ) 

Ans:- R.

II. Answer the following questions: 

(i) What are the types of risks borne by the retailers? Mention any two risks. _________________________________________________ _________________________________________________ 

Ans:- a. Loss of goods by fire or theft. 

b. deterioration in the quality of goods as long as they are not sold out.

(ii) How do the producers get benefits from the functions of retailers? Write the benefits arising from any two functions.

_________________________________________________ _________________________________________________ _________________________________________________ 

Ans:-  (a) They Help in marketing by assembling and displaying goods. 

(b) They bear risks that would otherwise have been borne by producers. 

(c) They supply information to producers about the tastes and preferences of consumers.

(iii) Suppose two or three shopkeepers sell the same type of goods in your locality. From which shopkeeper would you like to purchase your requirements? _________________________________________________ _________________________________________________ _________________________________________________ 

Ans:- From that shop which we would like to purchase our requirements from the shopkeeper who: 

(a) charges reasonable price. 

(b) provides after sales services. 

(c) provides variety of goods according to our tastes and preferences. 

(d) provides facilities like credit sales, home delivery etc.


Multiple Choice Questions

(i) Direct Channel includes only. 

(a) Producer → Retailer → Consumer. 

(b) Producer → Consumer. 

(c) Producer → Wholesaler → Consumer. 

(d) Producer → Agent → Consumer.

Ans:- (b) Producer → Consumer.

(ii) The trade in which bulk quantity of goods are sold to trader is called 

(a) Foreign Trade. 

(b) Wholesale Trade. 

(c) In Land Trade. 

(d) Retail Trade.

Ans:- (b) Wholesale Trade.

(iii) Wholesaler is an important link between 

(a) Producer and Wholesaler. 

(b) Retailer and Consumer. 

(c) Producer and Consumer. 

(d) Producer and Retailer.

Ans:- (c) Producer and Consumer.

(iv) The likes and dislikes of consumers reach to wholesalers form time to time through- 

(a) Advertisement. 

(b) Newspaper. 

(c) Retailers. 

(d) Consumers. 

Ans:- (d) Consumers. 

(v) The main features of a wholesaler is – 

(a) To advertise the products. 

(b) To sell the goods at cheap rates. 

(c) To deal in variety of goods. 

(d) To purchase the goods from producers and sell them to retailers.

Ans:- (d) To purchase the goods from producers and sell them to retailers.

Terminal Questions

1. What is meant by Channels of Distribution?

Ans:- A distribution channel is the network of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It encompasses the various pathways used to deliver goods to their final destination, such as wholesalers, retailers, and the Internet.

2. Give four examples of services that are distributed through the direct channels.

Ans:- Here are the four examples distributed through the direct channels: Bata India Ltd, HPCL, Banks, consultancy firms and telephone companies.

3. Explain the different channels through which a product moves from producers to ultimate consumers.

Ans:- The different channels through a product moves from producers are listed below:

(i) Direct Channel: In this channel, producers sell their goods and services directly to the consumers. There is no middleman to come between the producers and consumers. The producers may sell directly to consumers through door-to-door salesmen and through their own retail stores. For example, Bata India Ltd, HPCL, Liberty Shoes Limited have their own retail shops to sell their products to consumers.

(ii) Indirect Channel: If the producer is producing goods on a large scale, it may not be possible for him to sell goods directly to consumers. As such, he sells goods through middlemen. These middlemen may be wholesalers or retailers. A wholesaler is a person who buys goods in large quantities from producers; where as a retailer is one who buys goods from wholesalers or producers and sells ultimate by to consumers as per their requirements.

4. Define wholesaler. How do they serve as an important link in the channel of distribution?

Ans:- Wholesalers are one of the important middlemen in the channel of distribution who deal with the goods in bulk quantity. They buy goods in bulk from the producers and sell them in relatively smaller quantities to the retailers.

Wholesalers play an important role in the channel of distribution; they buy goods in bulk from the producers and sell them in relatively smaller quantities to the retailers.  Also, they sell goods directly to the consumers if the quantity to be purchased is more. They usually deal with a limited variety of items and also in a specific line of product, like iron and steel, textiles, paper, electrical appliances, etc. 

5.  ive any four characteristics of retailers.

Ans:- The following are the characteristics of retailers

(i) Retailers have direct contact with consumers. They know the requirements of the consumers and keep goods accordingly in their shops. 

(ii) Retailers sell goods not for resale, but for ultimate use by consumers. For example, you buy fruits, clothes, pens, pencils etc. for your use, not for resale. 

(iii) Retailers buy and sell goods in small quantities. So customers can fulfil their requirement without storing much for the future.

(iv) Retailers require less capital to start and run the business as compared to wholesalers.

6. Explain the role of retailers in distribution of goods.

Ans:- The role of retailers in distribution of goods are discussed below:

(i) Buying and Assembling of goods: Retailers buy and assemble varieties of goods from different wholesalers and manufacturers. They keep goods of those brands and varieties which are liked by the customers and the quantity in which these are in demand. 

(ii) Storage of goods: To ensure ready supply of goods to the customer retailers keep their goods in stores. Goods can be taken out of these stores and sold to the customers as and when required. This saves consumers from the bother of buying goods in bulk and storing them. 

(iii) Credit facility: Although retailers mostly sell goods for cash, they also supply goods on credit to their regular customers. Credit facility is also provided to those customers who buy goods in large quantities.

(iv) Personal services: Retailers render personal services to the customers by providing expert advice regarding quality, features and usefulness of the items. They give suggestions considering the likes and dislikes of the customers.

(v) Risk bearing: The retailers have to bear many risks, such as risk of: 

(a) fire or theft of goods. 

(b) deterioration in the quality of goods as long as they are not sold out. 

(c) change in fashion and taste of consumers.

(vi) Display of goods: Retailers display different types of goods in a very systematic and attractive manner. It helps to attract the attention of the customers and also facilitates quick delivery of goods. 

(vii) Supply of information: Retailers provide all information about the behaviour, tastes, fashions and demands of the customers to the producers through wholesalers. They become a very useful source of information for marketing research.

7. State any five differences between wholesalers and retailers.


(i) Buy goods in large quantities.(i) Buy goods in small quantities.
(ii) Buy goods directly from producers.(ii) Generally buy goods from the wholesalers.
(iii) Deals in a limited variety of goods. (iii) Deals in a wide range of products.
(iv) Require more capital to start and run the business.(iv) Require less capital to start and run the business. 
(v) Sells goods for resale purposes.(v) Sells goods for consumption.

8. Explain the functions of wholesalers.

Ans:- Following are the functions, which a wholesaler usually performs: 

(a) Collection of goods: A wholesaler collects goods from manufacturers or producers in large quantities. 

(b) Storage of goods: A wholesaler collects the goods and stores them safely in warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are stored in cold storage. 

(c) Distribution: A wholesaler sells goods to different retailers. In this way, he also performs the function of distribution. 

(d) Financing: The wholesaler provides financial support to producers and manufacturers by providing money in advance to them. He also sells goods to the retailer on credit. Thus, at both ends the wholesaler acts as a financier. 

(e) Risk taking: The wholesaler buys finished goods from the producer and keeps them in the warehouses till they are sold. Therefore, he assumes the risks arising out of changes in demand, rise in price, spoilage or destruction of goods.

(f) Grading: He classifies the goods in different categories since all the collected goods are not of the same quality. He grades the goods on the basis of quality, size and weight etc.

(g) Pricing: The final prices are set by the wholesalers. They provide stability to the prices by regulating supply of goods in accordance with the demand for them. They influence market conditions, the demand for the goods and the taste of the people and make necessary arrangements to meet the demand when it comes up.

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