1. Mr Ravi Kumar is a sole proprietor. He has been doing the wholesale business of tea for the last ten years. The Brand Name of his tea is 'Kadak'. This is a popular brand of
its region. For sometime now he has been worried about two issues. First, his business
organisation comes in the unorganised sector; so people have little faith in him. For
example, if he wants to buy goods on credit from a trader, he is unable to do so easily.
Similarly, if he wants to get a loan from some one, he is able to do so on very hard terms.
Such a treatment by the people produces the inferiority complex in him. The second
issue worrying him is that his responsibility in business is unlimited. If unfortunately he
suffers a heavy loss in business, his business property and personal property both will
be finished. He wants that he should get rid of these worries also. With this problem in
hand, he contacts a business specialist. He suggests such a way out as removes all the
problems of Ravi, Ravi adopts the new form of business quite happily.
In your opinion what advice might have been given to Mr Ravi Kumar by the business
specialist and why?
[3]
Dorcon