Observation

Many candidates attempt this question and their performance was generally good. However some candidates listed the factors in part (a) in the question. For part (b), many candidates could not state how government uses the terms to regulate business

The expected responses are.

(a)   Factors to be considered in setting up a retail business

1. Nature of product to be dealt in will determine all other factors.
2. The capital available for investment will also influence the type of business that will be    set up.
3. The proposed location of the business will also be considered.
4. The technology available in the line of business and its affordability will influence the           choice of business.
5. The knowledge and experience of the retailer will influence his choice of business.
6. The level of demand for the type of product to be dealt in.
7. Target market for the product to be dealt in would influence choice of business.
8. The Law relating to the line of business as stipulated by the state will influence the choice           of business.
9. The sources of supply of goods to replenish stock will also determine the type of business           to set up.
10. The level of profit expected in the line of business should also be considered.

               
(b)  The uses of the following by government to regulate businesses

1. Registration of business name

Government policy demands that businessmen who are going to trade in other names,  
other than their name, should register such names so that their details can be recorded to 
avoid fraud where the owner cannot be traced.

2. Patent

This is the right granted to an inventor to prevent other people from producing the same product for a period of time, so that the inventor could have exclusive right to his work.

3. Trademark

This will allow companies to register a logo or name, or any form of symbol that other businesses will not be allowed to use. Whoever uses this can be sued for tort of passing    off.


4. Copyright
This is the right given to an author of a book or audio recording, to prevent others from using the contents without recourse to the original.