b) Explain seven factors to consider when selecting a suitable location for a retail outlet. [14 marks] QUESTION FOUR Write short notes on each of the following giving examples: a) Mergers [5 marks] b) Acquisitions [5 marks] c) Capital markets [5 marks] d) Franchise [5 marks] QUESTION FIVE a) Explain five characteristics that distinguish a co -operative from a public limited company. [10 marks] b) Detail the contents of a business plan. [10 marks]

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b) Explain seven factors to consider when selecting a suitable location for a retail outlet. [14 marks] QUESTION FOUR Write short notes on each of the following giving examples: a) Mergers [5 marks] b) Acquisitions [5 marks] c) Capital markets [5 marks] d) Franchise [5 marks] QUESTION FIVE a) Explain five characteristics that distinguish a co -operative from a public limited company. [10 marks] b) Detail the contents of a business plan. [10 marks]

Answer 1

QUESTION THREEb) When selecting a suitable location for a retail outlet, the following seven factors should be considered:1. Accessibility: The location should be easily accessible to the target customers, with good transportation links and parking facilities.2. Demographics: The local population demographics, such as age, income, and lifestyle, should align with the target market of the retail outlet.3. Competition: The location should not have an oversupply of similar retail outlets, which could lead to reduced customer traffic.4. Visibility: The retail outlet should be easily visible to potential customers, with high foot traffic and prominent signage.5. Proximity to suppliers: The location should be close to suppliers and distributors to minimize transportation costs and ensure timely delivery of goods.6. Zoning regulations location should comply with local zoning regulations and land use restrictions.7. Rent or lease terms: The rent or lease terms should be reasonable and provide long-term stability for the retail outlet.QUESTION FOURa) Mergers: Mergers occur when two or more companies combine to form a new entity. For example, when Company A and Company B merge, they create a new company, Company C, which owns the combined assets and liabilities of the two original companies.b) Acquisitions: Acquisitions occur when one company purchases another company. For example, when Company A acquires Company B, Company A becomes the owner of Company B's assets and liabilities.c) Capital markets: Capital markets refer to the financial markets where companies and governments raise capital by issuing securities, such as stocks and bonds. For example, a company may issue shares of stock to raise funds for expansion.d) Franchise: A franchise is a business arrangement where an individual (the franchisee) operates a business using the branding, products, and business model of an established company (the franchisor). For example, a McDonald's restaurant is a franchise operated by an individual using the McDonald's brand and business model.QUESTION FIVEa) Five characteristics that distinguish a co-operative from a public limited company are:1. Ownership structure: In a co-operative, the members own and control the business, while in a public limited company, the shareholders own the company.2. Profit distribution: In a co-operative, profits are distributed among the members based on their participation, while in a public limited company, profits are distributed to shareholders based on their share ownership.3. Decision-making: In a co-operative, decisions are made by the members in limited company, decisions are made by the board of directors.4. Limited liability: In a co-operative, members have limited liability, while in a public limited company, shareholders have limited liability.5. Democratic control: In a co-operative, each member has an equal say in decision-making, while in a public limited company, decision-making power is proportional to share ownership.b) The contents of a business plan typically include:1. Executive summary: A brief overview of the business and its objectives.2. Company description: Detailed information about the business, including its history, mission, and values.3. Market analysis: Analysis of the target market, including size, growth potential, and competition.4. Product or service description: Description of the products or services offered by the business.5. Marketing and sales strategy for promoting and selling the products or services.6. Operations plan: Description of how the business will operate, including production, logistics, and supply chain management.7. Financial projections: Projections of the business's financial performance, including revenue, expenses, and cash flow.8. Funding request: If the business is seeking funding, a detailed explanation of the amount of funding required and how it will be used.9. Appendices: Supporting documents, such as market research data, product specifications, and legal agreements.

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