WAEC Commerce 1996 Question 35

Question 35

Retail Trade

Small scale retail attracts a lot of new entrepreneurs in West Africa because

  1. A.many people have had good training in retail trade
  2. B.it is easy to succeed with the business
  3. C.banks are always ready to lend to retailers
  4. D.only a small amount of capital is needed to start the business
  5. E.government exempts retailers from paying tax
Show the answer and explanation

Answer: D (only a small amount of capital is needed to start the business)

Explanation

Small-scale retailing needs little capital, so it is easy to enter.