WAEC Marketing 2022 Theory — Question 1

Model answer

(a)(i) Entrepreneurship can be defined as all efforts concerned with setting up a business concern, taking on inherent risks of the business with the intention of making profit. (ii) Personal savings: the savings of the entrepreneur, from salary earned or from other sources of income, channeled to the business. Profit plough-back: putting some of the profit made from the business back into the business as another source of funding. Loan and borrowing: seeking loans from financial institutions and friends. Credit purchase: another salient source of funding to an entrepreneur. (b) Proximity of the market to residential areas; proximity of the market to its feeders (supply routes); availability of essential facilities such as electricity; government policy as to where a market outlet should be located; cost of a location; and general accessibility, which can also determine where a market outlet will be located.