Theory question 105
Marketing FinanceAdamu intends to open a store to sell detergents as a major distributor for companies in the country. (a) List and expalin four sources from which Adamu could get funds to finance the business. (b) State four factors that would influence Adamu's choice of the location for the business.
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(a) Any four, explained: personal savings (his own money); loans from family and friends; bank loans or overdraft; trade credit from detergent manufacturers; cooperative society loans; microfinance or government schemes; bringing in partners; hire purchase/leasing of vehicles and equipment.
(b) Any four: nearness to retailers/customers; nearness to the manufacturers (source of supply); good roads and access for trucks; cost of land or rent; security; availability of storage space; level of competition; government regulations.
Give each point as a full sentence, with an example where possible.