(a) Discuss any five factors to be considered by Mr. Touray in locating his shop. (b) Explain five ways a wholesaler can aid Mr. Touray's business.

Answer Details

(a) Five factors Mr. Touray should consider in locating his shop

1. Nearness to customers: The shop should be sited where there are enough people to buy his goods.
2. Availability of transport and good roads: Easy access allows customers to reach the shop and goods to be delivered.
3. Nearness to source of supply: Being close to suppliers reduces transport costs and delays in restocking.
4. Cost of rent and land: The rent or price of the premises must be affordable and match the expected profit.
5. Security and provision of infrastructure: A safe area with electricity, water and other facilities protects goods and supports business operations. Competition from other shops nearby should also be considered.

(b) Five ways a wholesaler can aid Mr. Touray's business

1. Breaking bulk: The wholesaler buys in large quantities and sells to Mr. Touray in smaller quantities he can afford and handle.
2. Granting credit: The wholesaler may supply goods on credit, easing Mr. Touray's shortage of capital.
3. Storage: The wholesaler holds stocks, so Mr. Touray need not tie up money and space storing large quantities.
4. Steady supply and variety: The wholesaler provides a regular supply of a wide range of goods, so the shop is never short of stock.
5. Provision of information and advice: The wholesaler advises the retailer on new products, prices and market conditions, and may deliver goods to the shop.