GCECommerceWarehousing2023

Which of the following is NOT a benefit of warehousing to a trader?

AIt enables the trader to take advantage of bulk purchasing discounts
BIt eliminates the need for the trader to pay transport costs entirelyCORRECT
CIt allows the trader to stabilise prices by releasing goods gradually
DIt provides a means of obtaining credit using stored goods as collateral
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Warehousing does not eliminate transport costs; goods still have to be transported to and from the warehouse. The other options are genuine benefits: bulk buying reduces unit cost, controlled release stabilises prices, and warehouse receipts can be used as collateral for loans.
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