(a) Explain four factors to be considered in setting up a retail business. (b) State how the government uses the following to regulate business: i. registra...

(a) Four factors to be considered in setting up a retail business

1. Location: the shop should be sited close to customers, in an accessible place with good transport and enough passing trade.
2. Capital available: the amount of money on hand determines the size of the shop, the stock to be carried and the type of goods to sell.
3. Type of goods to sell: the trader must consider the nature and demand for the goods (perishable or durable) and the needs of the people in the area.
4. Nearness to source of supply and competition: the ease of obtaining goods from wholesalers and the level of competition from other retailers in the area must be weighed.

(b) How government uses the following to regulate business

• i. Registration of business name: the law requires every business to register its name with the Corporate Affairs Commission before operating; this controls who goes into business, prevents duplication of names and enables the government to monitor and identify businesses.
• ii. Patent: government grants an inventor the exclusive right to make and sell his invention for a period; this protects inventors, prevents others from copying and encourages innovation.
• iii. Trade mark: government registers and protects the special mark or symbol that identifies a firm's goods, preventing rival firms from using or imitating it and protecting consumers from fake products.
• iv. Copyright: government protects the works of authors, artists and musicians so that others cannot reproduce or sell them without permission, thereby rewarding and encouraging creative effort.