Theory question 101
Retail TradeCommerce 2 (answer five questions)
(a) Describe any four features of a multiple shop.
(b) Give any four reasons why small scale retailing is common in Nigeria.
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(a) Four features: many branches in different towns under one ownership; centralised management and control from head office; same type of goods sold in all branches; branch layout, shop fronts and prices are uniform; head office buys in bulk centrally and distributes to branches; each branch run by a manager; sells mostly for cash; often specialised in one line (e.g. shoes – Bata).
(b) Four reasons: little capital needed to start; low incomes – customers buy in small quantities; easy to start, few legal formalities; owner's personal attention and credit to known customers; serves scattered rural population; flexible opening hours and convenient location; unemployment – people take it up as self-employment; low production limits large-scale retailing.
Describe features in (a); in (b) link each reason to Nigerian conditions.