Question

5. Suppose that you are opening a new music store in your town. What resources would you need from the factor market? How would the government affect your business?

Answer 1

A Music Store can be divided into 2 categories:

• An instruments section.

• A record's section.

For the 1st category, you will need to close deals with suppliers that offer good quality instruments and that also have gained some prestige in the market, as this is a key factor when a consumer ends making his purchasing decision.

For the second category, the supplier is not such a decisive factor, as all of the records are the same regardless of the supplier. However, the government would make periodical inspections checking for any material that could be considered as "pirate" products, which, if sols, will not give any royalties to the artists. As a store owner, you should always have piracy issues in mind as they could heavily affect your business.