WAEC Commerce 2016 Theory — Question 2

Model answer

(a) Features of self-service shops: - A self-service shop must have adequate security - There must be clear price catalogue of the goods available - Provision of trolleys to aid buyers - Easy pay point to facilitate easy payment (b) Disadvantages of self-service shop: - It gives buyers freedom to make decision that best suit them (this can also lead to poor purchase decisions) - It reduces the cost of salary of attendance on the part of the shop owner - It provides a wide range of goods to the buyer - It gives buyer freedom of privacy (which can also enable shoplifting) (c) Importance of working capital to a business: - Working capital assist the business to meet its daily cash obligations - It spells out the liquidity of the business - It also helps to boost earnings of the business as it will be able to meet any short-term business needs - It helps the management to make rational decision as regard its liquid assets