Retail, Wholesale, and Business Partnerships

Posted on Jan 7, 2025 in Economy

Services of Retailers to Consumers

Retailers buy and stock goods suitable for consumers.
Retail shops are situated in convenient localities, usually very near the consumers’ residence.
They sell to consumers in quantities that suit the pockets of different individuals.
Retailers make available to their customers goods of the sizes, styles, types, qualities, and prices they prefer.
Many retailers offer free home delivery of goods purchased.
Many types of retailers sell goods on credit to their customers whom they know personally.

Wholesalers help the manufacturer to concentrate on manufacturing operations.
The wholesaler buys in large quantities. Thus, he enables the manufacturer to get the benefit of economies of large-scale production.
The wholesalers collect orders from a large number of retailers and supply them from the stock of goods supplied in bulk by the manufacturer.
By stocking products of a seasonal nature, he makes it possible for the manufacturer of such products to continue production.
The wholesaler helps the manufacturer to regulate his production in accordance with the changing requirements of the market.

They provide convenience in buying.
They provide loans and other facilities.
They help to overcome the problems of shortages of products.
They help retailers in getting products at their doorstep, which reduces transport costs.
The wholesaler supplies the retailer in those quantities which are suitable for resale.

“Advertising is to give public notice or to announce publicity.”
“Marketing is meeting the needs and wants of the customers.”
“Wholesaling or wholesale trade includes the sale and all activity incidental to the sale of the products to those who are buying for the purpose of resale for business use.”
“Mudarabah is a special kind of partnership in which one partner gives money to another for investing it in a commercial enterprise.”

Rab-ul-Maal: The investment comes from the first partner who is called Rab ul Maal.
Mudarib: The management and work is the exclusive responsibility of the other.

“Musharakah is a word of Arabic origin which literally means sharing. In the context of business and trade, it means a joint enterprise in which all the partners share the profit or loss of the joint venture.”
“Partnership is the relationship between persons who have agreed to share all profits of the business carried on by all or any one of them acting for all” (Partnership Act 1932).
Occupation, practice, or vocation requiring mastery of a complex set of knowledge and skills through formal education and/or practical experience. Every organized profession (accounting, law, medicine, etc.) is governed by its respective professional body.

Active, sleeping, nominal, secret, partners in profit only, sub, incoming, outgoing, limited, minor.