The correct option is 2 only
Explanation
Trade is essentially the buying and selling of items produced elsewhere. It is broadly classified into wholesale trade and retail trade based on the volume of transaction and the target buyer in the supply chain.
Statement-wise Analysis:
- Statement 1 is Incorrect: Wholesale trade constitutes bulk business conducted through numerous intermediary merchants and supply houses. Wholesalers purchase goods in large quantities directly from manufacturers and sell them to retailers, other merchants, or industrial users, rather than directly to the final consumer. They often extend credit to retailers.
- Statement 2 is Correct: Chain stores are networks of retail shops that are owned and operated by a single organization. They are not independently owned; rather, they function under central management and follow uniform policies regarding merchandise, pricing, and store layout. Examples include brand outlets like Bata or McDonald's.
Key Takeaway:
Wholesale trade acts as an intermediary link between manufacturers and retailers, dealing in bulk quantities, whereas chain stores are centrally managed retail outlets owned by a single entity.