(a)Explain five reasons why a manufacturer may engage in personal selling.
(b) Explain five characteristics of Sole Proprietorship.
Explanation
(a) Reasons why a manufacturer may engage in personal selling include:
(I) It is a form of sales promotion which encourages on the spot purchases by buyers.
(ii) It is used by business firms to introduce new products.
(iii) It is used for selling technical goods requiring demonstration on the usage or installation.
(iv) It makes possible personal contact between buyer and seller, thus facilitating immediate feedback.
(v) It is used to sell custom made or expensive goods.
(vi) It is used to revive customers' interest in the old products of a firm.
(vii) It is a public relations technique for maintaining a improving on a firm's image.
(b) The main characteristics of sole proprietorship are:
(i) He enjoys benefits alone.
(ii) bears the risk alone.
(iii) There is no continuity.
(iv) The capital is raised by the single owner.
(v) The ownership is based on a single person.
(vi) Liability is not limited, it extends to the private property of the proprietor.
(vii) It is not a legal and separate from the owner as is the case with registered company.
(viii) Proprietor is independent and prompt decision are taken easily.