Question:

Sudershan has undergone skill development training for maintenance of electronic items, from an institute started under the ‘Skill Development Mission’ by the Government of India. He wants to start his own small business in his locality with<1,00,000 given by his father as capital. He himself wants to manage and control this business, employing some assistants, if required. Out of the following, suggest the form of business organisation he can adopt:

  • Public Limited Company
  • Private Limited Company
  • Partnership
  • Sole Proprietorship
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The Correct Option is D

Solution and Explanation

Sudershan wants to start a small business with a low investment (less than Rs. 1,00,000) and wishes to manage and control it by himself. These characteristics are most suitable for a Sole Proprietorship, which is a form of business owned and operated by a single individual.
Sole Proprietorship: Best suited for individuals starting with small capital, full control, and a desire for easy setup.
Partnership: Involves two or more people, which does not match Sudershan’s desire to manage the business alone.
Private Limited Company: Requires more legal formalities and capital investment.
Public Limited Company: Meant for large-scale businesses with public shareholders; not suitable for a local, personal business. Thus, the best-suited option is (D) Sole Proprietorship.
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