State with reasons, whether the following statements are True or False

1.	State with reasons, whether the following statements are True or False:Business can be expanded with the help of mercantile agents.
Answer» This statement is TRUE. Reasons: ‐ In the process of distribution, producers and consumers are unable to have direct contact, as consumers are spread over a vast area. ‐ Mercantile agent is an agent who is authorized by a principal (producer/wholesaler/retailer) to buy or sell goods on his behalf. ‐ Mercantile agents thus remove the difficulty of personal contact by acting as middlemen who form a link between the buyers and the sellers. ‐ They do not carry on business in their own name but in the name of the seller. ‐ With the help of mercantile agents, a seller can thus sell more goods and services and create new customers. In this way, mercantile agents help the business to expand as they widen the distribution area of the business.

State with reasons, whether the following statements are True or False:Business can be expanded with the help of mercantile agents.

Answer»

This statement is TRUE.

Reasons:

‐ In the process of distribution, producers and consumers are unable to have direct contact, as consumers are spread over a vast area.

‐ Mercantile agent is an agent who is authorized by a principal (producer/wholesaler/retailer) to buy or sell goods on his behalf.

‐ Mercantile agents thus remove the difficulty of personal contact by acting as middlemen who form a link between the buyers and the sellers.

‐ They do not carry on business in their own name but in the name of the seller.

‐ With the help of mercantile agents, a seller can thus sell more goods and services and create new customers.

In this way, mercantile agents help the business to expand as they widen the distribution area of the business.