Question

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 for the loss. a) Identify which form of business Rohit and Gurinder were doing? Quote the lines from paragraph indicating it. b) Explain any two problems faced by the type of business mentioned in (a). c) Identify the cause of business risk suffered by Rohit and Gurinder.​

Answer 1

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