Theory question 104
Retail TradeCommerce 2 (theory)
(a) Explain four factors to be considered in setting up a retail business.
(b) State how government uses the following to regulate businesses:
(i) registration of business name;
(ii) patent;
(iii) trade mark;
(iv) copyright.
Show the model answer
(a) Any four, explained: capital available; location/nearness to customers; nature of goods to sell; level of competition; sources of supply; government regulations and licences; availability of infrastructure and security; size of the market/demand; personal skills and experience.
(b)(i) Registration of business name – every business must register its name, so government knows who owns it, prevents two firms using the same name, and can hold owners responsible.
(ii) Patent – government grants an inventor the sole right to make and sell an invention for a period, preventing others from copying it.
(iii) Trade mark – registered marks/symbols protect a firm's brand from imitation and protect consumers from fakes.
(iv) Copyright – protects authors, musicians and artists from unauthorised copying of their works, so only the owner can reproduce them.
In (b) say what each one protects and who it protects.