Theory question 102
Retail TradeCommerce 2 (theory)
(a) List four features of a self service shop.
(b) State four disadvantages of a self service shop.
(c) State four importance of working capital to a business.
Show the model answer
(a) Any four: customers serve themselves; goods are pre-packed and price-marked; goods displayed on open shelves; baskets/trolleys provided; payment at check-out points near the exit; few sales attendants; usually cash sales.
(b) Any four: risk of shoplifting; little personal attention or advice; no credit; impulse buying may make customers overspend; high cost of setting up (shelves, security); goods may be damaged by handling; unsuitable for goods needing explanation.
(c) Any four: pays day-to-day expenses (wages, rent, bills); buys stock/raw materials; allows the firm to take discounts by paying promptly; keeps the business solvent – able to pay short-term debts; enables credit to customers; helps face emergencies; shows financial health to creditors.
(c) is about working capital, separate from the shop questions.