(a) Explain four factors to be considered in setting up a retail business.
i. registration of business name
ii. patent;
iii. trade mark;
iv. copyright.
Explanation
(a) Factors to be considered in setting up a retail business:
i. Availability of capital: There should be the availability of capital to stock the goods and for the payment of rent.
ii. Best location: It is important for the person setting up a retail business to secure the right location for his business. For instance, someone who wants to be selling stationery materials must be close to an area full of schools
iii. Target market: The target market must be close to the right location where you have your retail business.
iv. Financial capital: This is needed to function well in the business. It can be raised by investors and lenders to operate comfortably.
v. Adequate transport network: There should be an adequate transport network to move goods to the store for retail.
vi. Nearness to Customers: The location of the business must be close where there is demand for the goods sold.
vii. Closeness to the source of supply of products: The shop should be very close to where goods can be easily obtained.
viii. Nature of goods: The nature of goods is equally important to be considered.
ix. Level of competition: The number of other traders in the same line of business in the location should be considered.
x. Accessibility: He or she should consider the availability of accessible roads to his business premises.
xi. Government policy: Government policy, if any, as it relates to the location of such business must be considered.
(b) How the government uses the following to regulate business:
i. Registration of business name: The government made the registration of business names compulsory under the Company Act. All businesses must be registered either as a Sole trading, a partnership, a public company, or a co-operative. In Nigeria, it is the Corporate Affairs Commission (CAC) that is saddled with the responsibility of registering business enterprises before commencing operation. The Corporate Affairs Commission will then issue a certificate of incorporation to any business incorporated. The Government also does this to raise revenue through tax imposition for certain purposes. For example, in Nigeria, companies pay education tax as value-added tax (VAT).
ii. Patent right: The government grants this exclusive right to a person to make use or sell an invention for a certain period of years. This gives the owner some degree of monopoly of the invention Nobody can make use of such invention without permission from the right owner. The government does this to encourage innovation and allow the investor to recoup his or her research cost.
iii. Trademark: This is a distinctive symbol, special mark, or design that is given to a producer to distinguish or identify its products from other products. Trademark is a legal term covering words and symbols which can be registered and protected. If the trademark is infringed upon, government empowers the owner of the copyright to sue the culprit. Trademark. registration in Nigeria is regulated by the Trademarks Act 1967
iv. Copyright: This is an exclusive or sole right granted to writers of literary works (authors), musicians, and artists to produce their works for a specified period of time. Another person cannot reproduce such work without written permission from the copyright owner, Literary copyright will last for 50 years after the death of the author while musical rights will only last for 50 years after its release. In Nigeria, the agency in charge of copyright issues is the Nigerian Copyright Commission.
