Correct Answer: D. capital, type of goods and source of supply

Explanation

The factors are: capital, pricing policy, source of supply, type of goods, terms of trade, experience, advertising, location of the business.

Correct Answer: A. advertising and sales promotion strategies

Explanation

Environments under which a business operates are:

(i) Technological environment: Technological changes make previous material obsolete, hence businesses adjust to changes in technology.

(ii) Legal environment: The business has to operate bearing in mind that the legal provisions such as decrees, rules and regulations that affect its operations are to be obeyed.

(iii) Social environment: Changes in the social environment affect consumers' attitude and life style which invariably affect their purchasing and consumption habit .

(iv) Physical/Climatic environment: Changes such as desert encroachment, drought, erosion, river pollution and depletion have effects on business organisations.

(v) Cultural environment: Culture has a bearing on consumption pattern. The type of goods to purchase and the values held by consumers are determined by culture. Some do not take alcohol while others do.

(vi) Political environment: Government policies determine business practices and investment climates in an economy. The priority of the political party in power would definitely affect business operations negatively or positively.

Correct Answer: A. encouraging research activitiesto meets needs

Correct Answer: B. Provision of credit facilities

Correct Answer: C. market value

Explanation

(a) The advertising media she could use include:

• The press, (newspapers, magazines/journals and books) -
• Television
• Radio
• Cinema
• Hoarding (billboards)
• Window display Catalogues
• Exhibitions and trade fairs
• Handbills/ fliers Car stickers.

ii. The factors she would consider in the choice of a medium are:-

- Coverage or extent of circulation: This refers to the number of people that can be reached by the medium, i.e. the percentage of a given market covered.-

- Frequency: This means the number of times the same viewer or reader may be exposed to the same advert.

- Communication effectiveness: This refers to the ability of a medium to deliver the impact as desired by the advertiser to the target market.

- The target audience: She must consider the type and social group to which an advertisement is directed and their purchasing power.

- Cost: The cost of using a particular medium will determine the one to be chosen by the advertiser.

- Flexibility of a medium: This refers to the number of different things she can do using the same medium. For example, direct mail allows the enclosure of money, coupons and pencils.

- Nature of the goods: The nature of the products will determine the choice of media to be used for advertising.

- Geographical selectivity: This is the ability of the medium to reach out to homes in specific geographical areas such as Villages and hamlets.

-The media used by competitors: The media used by manufacturers of competing products must be carefully considered before making a choice of medium.

(b) The advantages of advertising to her business are:

- Provision of information about features: it helps her to explain the use, features, and benefits of her business to the consumers.

-Increase in cost per unit of goods will be reduced thereby attracting consumers to her business.

- Increase in profit: it increases the profitability of an organization

- Higher revenue: The advertising firms also gain in terms of revenue.

- Provision of information about the existence of goods: It provides information about the existence of her business.

- Improvement in quality of goods: It helps in improving the quality of goods as a result of healthy competition.

- Increase in production: It can lead to an increase in production as more goods/services will be demanded

- Creation of awareness: It helps her in creating awareness for her business.

Correct Answer: B. retailing

Correct Answer: B. all types of securities are sold

Correct Answer: A. declaring the buyer bankrupt

Explanation

Although ownership of the goods is passed to the buyer after the sale of goods but an unpaid seller has certain rights. to either retain ownership of the goods till payment is made, or resell the goods etc. An unpaid seller has doesnt have the right to declare a defaulting buyer bankrupt.