Question

Sheela had set up a small scale industry in her village in Andhra Pradesh for
manufacturing handicraft items. She decided to hire local women from their nearby
locality for increasing their production. But the problem with her business was that it
had a small capital base. So, she could not afford to pay higher salaries to the employees,
which affected their willingness to work and produce more. She had sound technical
knowledge but was not successful in marketing the output. Due to limited demand for
her handicraft items, the business firm has to operate below full capacity leading to
increase in operating expenses. Identify the four problems of small scale business
discussed in the above case. Also quote the lines for the identified problems.

Answer 1

Answer:

Explanation:

She decided to hire local women from their nearby locality for increasing their production. The problem with her business was that it had a small capital base. ... Due to Limited demand for handicraft items, the business firm have to operate below full capacity leading to increase in operating expenses.