Theory question 106
Marketing FinanceMamaput is a popular catery in the city centre and wants to open up more outlets in other parts of the city.
(a) State four sources of fund to finance the proposed expansion by Mamaput.
(b) Explain four factors that would influence the location of the new outlets.
Show the model answer
(a) Any four: ploughed-back profit; owner's personal savings; bank loan or overdraft; loans from friends and family; bringing in a partner; trade credit from suppliers; hire purchase/leasing of equipment; government or microfinance loans.
(b) Any four, explained: nearness to customers (offices, schools, busy roads); level of competition; cost of rent/land; security; availability of water, power and other amenities; accessibility and parking; nearness to suppliers of foodstuff; government regulations.
Give each point as a full sentence, with an example where possible.