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Mohan wants to open an industry of cotton with the money provided to him by his father, friends and his own savings. On the condition that Mohan will take care of the day-to-day work of the industry but his father and friends will have ownership in the cotton mill and the profits that Mohan will earn will be distributed among all of them. Mohan has no problem with this condition and is ready to give them ownership of the mill. But the location of the mill will be decided by Mohan and no one else will interfere in the day-to-day operations of the mill. Everyone agrees with each other and Mohan is all set to have his own cotton mill.
Question 1.1:
Suggest the best states where Mohan should set up his cotton industry and why?
Answer:
For Mohan, Maharashtra and Gujarat will be the best states to set up their cotton industry because of the availability of raw materials , labour and access to the port .
Question 1.2:
Based on the ownership, classify the type of industry Mohan will set up.
Answer
Based on the ownership of Mohan’s factory will be classified as a private sector industry because Mohan is the sole owner .
