WAEC Past Questions and Answers - Page 2615

Based on the information provided, Muyi, who sets up a poultry business upon retirement from the civil service, can be considered an entrepreneur. An entrepreneur is an individual who takes the initiative to start and operate a new business venture, assuming the associated risks and rewards. Muyi's decision to start a poultry business demonstrates his entrepreneurial spirit and willingness to invest his time and resources in a new venture.

The source of financing options available to a provision store owner include:

Personal Savings: The owner can use their personal savings to invest in or expand their provision store. This option allows them to have full control over the business without taking on any external debt or diluting ownership.

Bank Loans: The provision store owner can approach a bank or financial institution to secure a loan. They can use the loan funds to meet various business needs such as purchasing inventory, expanding the store, or covering operating expenses. The terms and conditions of the loan, including interest rates and repayment terms, will depend on the store owner's creditworthiness and the policies of the lending institution.

Trade Credit: The store owner can negotiate favorable credit terms with suppliers. This means that they can purchase inventory on credit and pay for it at a later date, which helps improve cash flow and working capital. Negotiating longer payment terms can provide temporary financing for the store's operations.

Leasing: The provision store owner can consider leasing equipment, such as refrigerators, shelving units, or point-of-sale systems, instead of purchasing them outright. Leasing allows the owner to conserve their capital and make regular lease payments over a specified period. It can be a more cost-effective option in terms of upfront expenses.

Crowdfunding: The owner can explore crowdfunding platforms where individuals contribute small amounts of money to support a business idea or venture. Crowdfunding can be an effective way to raise funds and generate interest in the provision store. However, it requires a compelling pitch and marketing effort to attract potential backers.

Convenience goods are those that the customer purchases frequently, immediately, and with minimum effort. Soaps and newspapers are considered convenience goods.

The quantity of the product would not typically be considered by a cement manufacturing firm in the choice of transportation mode for its goods. The quantity of the product being transported is not a determining factor in selecting the mode of transportation. Instead, factors such as the cost of the mode, availability of the mode, and government policies (such as regulations or subsidies) regarding transportation modes would be more relevant considerations for the cement manufacturing firm. The firm would evaluate the cost-effectiveness of different transportation modes, the availability and reliability of those modes in meeting their shipping requirements, and any relevant government policies or regulations that may impact their choice of transportation.

An organizational factor that influences a manager's decision to buy raw materials from a particular source is the company's image. The image of a company refers to its reputation, brand perception, and how it is viewed by customers, suppliers, and the general public. A positive company image can be a significant factor in supplier selection decisions as managers may prefer to associate their organization with reputable and reliable suppliers. A strong company image can contribute to building trust, credibility, and perceived quality, which are important considerations when choosing suppliers for raw materials.