Mamaput is a popular eatery in the city centre and wants to open up more outlets in other parts of the city. (a) State four sources of fund to finance the p...

Assessment: WAEC SSCE - Marketing - 2018 (Essay) Subject: Marketing

Question 1 Report

Mamaput is a popular eatery in the city centre and wants to open up more outlets in other parts of the city.

(a) State four sources of fund to finance the proposed expansion by Mamaput.

(b) Explain four factors that would influence the location of the new outlets.

Answer Details

(a) Four sources of fund to finance the proposed expansion by Mamaput

  1. Ploughed-back profit (retained earnings): Using part of the profit already earned by the eatery to finance the new outlets.
  2. Bank loan or overdraft: Borrowing money from a commercial bank to be repaid with interest.
  3. Personal savings or contributions from the owner: Injecting the owner's own money into the business.
  4. Bringing in partners or investors: Admitting new partners who contribute capital in exchange for a share of the business.

Other acceptable sources: trade credit from suppliers, cooperative society loans, and government or small-business grants.

(b) Four factors that would influence the location of the new outlets

  1. Nearness to customers and population density: Outlets should be sited in busy areas with many potential customers, such as markets, offices and residential centres, to guarantee steady patronage.
  2. Availability of infrastructure: Good roads, water, electricity and drainage are needed for a food business to operate hygienically and conveniently.
  3. Cost of the site (rent or land): The rent or purchase price must be affordable and match the expected sales from the location.
  4. Level of competition: Mamaput should consider the number and strength of rival eateries nearby and choose a spot where it can attract enough customers.

Other acceptable factors: accessibility and parking for customers, security of the area, and government/zoning regulations on food businesses.

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