Concept:Wholesalers are essential in the chain of distribution because they provide financial support to both the producer and the retailer.
Explanation:When producers need funds to manufacture goods, wholesalers may pay in advance or purchase goods in large quantities.
This provides the producer with working capital to continue production.
Wholesalers also sell goods to retailers on credit, thereby financing the retailer's stock.
Thus, wholesalers act as a source of finance for both producers and retailers.
They are not usually located very close to consumers; that is the role of retailers.
They do not pass information from retailers to consumers, nor do they sell in small units to final consumers.
These functions belong to retailers in the distribution chain.
Answer:B. They finance both producers and retailers.