Shyam wanted to start a business of selling handicrafts by getting in touch wiht the craftsmen in the rural areas of Bengal. He wants to make a low investment in fixed Capital. Advise him in taking suitable decisions regarding the Nature of Business,Scale of operations and Financing Alternatives (in a developed financial market) that he needs to take for the purpose.

Shonali Sharma, after completing her MBA , began to help her father , Mr. Shiv Sharma , in his business . The business had a limited capital investment . Shonali wanted to use the modern business techiques in every area of business , namely , purchase , sales , production , finance etc . In fact , she wanted to implement the methods , which she had learnt in her MBA course , in her father's business . As soon as she started adopting the latest techniques , the workers began to protest and resist the changes . So she became disappointed and left her father's business . She started working in an MNC. Mr. Shiv Sharma was unable to assume the responsibilty of all managerial tasks such as purchasing , selling , financing , etc . Good workers started leaving the organisation . The goodwill of the business in the market went on declining .In no time , the liabilities of the business became many times more than the assets . On account of the pressure exerted on him by teh creditors , Mr. Shiv Sharma had to repay the debts of the business by disposing off his personal properties . (a) Identify the form of business organisation discussed in the above para . (b) Quoting the relevant lines from the para explain any three limitations of the form of business organisation identified in (a) .