WAEC Commerce 2020 Theory — Question 4

Model answer

(a) Factors to be considered before setting up a retail business: The capital required to set up: every business require initial set up, thus, the person intending to open a retail shop must consider what the business would require to start. The proximity to suppliers: a retailer will source his stock from a wholesaler, before setting up a retail shop, he must ensure he has access to these wholesalers. Proximity to the targeted market: the retailer must confirm that the targeted customers are available. Availability of other retail shops: If there are a wide range of existing retail shops or not, this must also be considered before setting up a retail shop. (b) Government ways of regulating businesses (table): Registration of business name — Government states that businesses must be registered to distinguish business A from business B. Patent — The government imposes that a company/firm has exclusive right to produce an item that is its sole discovery. Trademark — By this, the products of firms are given unique mark to differentiate them. Copyright — This is exclusive right which the government grants a writer to be a sole producer of his art work to protect it from piracy.