Rohit and Gurvinder are partners selling electronic products across India. They import the
components from China and assemble them in their factory established in a rural area of
Jharkhand. Most of the workers in the factory are children and women. They are paid very
less salaries thus owners save on labour cost. They sell their products across India and in
nearby countries like Bangladesh, Nepal and Srilanka. They store their stocks in a warehouse
but do not take proper safety measures against fire or burglary. There was a short circuit in
the factory and as result most of the stock was damaged. They filed a claim with insurance
company but their claim was rejected.
a) Identify which type of business Rohit and Gurvinder were doing? Give reason to support
your answer.
b) Explain the problems faced by the type of business mentioned in (a).
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