(a) List four features of a self service shop.
(b)State four disadvantages of a self service shop.
(c)State four importance of working capital to a business.
Explanation
(a) Features of self-service shop:
(i) provision of security
(ii) provision of price tags
(iii) There is entry and exit points
(iv) provision of trolleys and baskets
(v) provision of pay points at the point of exits
(vi) Large space to aid movement
(vii) Stocking of pre-packaged branded goods
(viii) Availability of few sales assistance
(ix) Attractive display of goods.
(b) Disadvantages of self service:
(i) Because goods are pre-packed, buyers are denied the opportunity of inspecting what they want to buy
(ii) It is not suitable for the sale of some product e.g. pharmaceutical goods.
(iii) It is possible for shoppers to steal items during shopping. High level of pilfering/shop lifting
(iv) There is no provision for bargaining as a result, many customers don't go to shop where there is self service.
(v) It requires a lot of spaces, trolleys security gadgets and baskets which increase the price of goods due to the extra costs.
(vi) There is less personal attention.
(vii) It encourages people to buy what they do not need.
(c) Importance of working capital to a business:
(i) Working capital helps to determine the fund that will be available for the running of the business on a daily basis.
(ii) It is a sign of healthiness i.e. a good financial state of the business.
(iii) It provides the basis for future planning for the business.
(iv) It provides the basis for profit making by the business since it is used to buy stock for more profit.
(v) It helps to check against tying down too much money on current assets.
(vi) It shows if a business is over trading.