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An entrepreneur wants minimum government interference in routine decision-making and is willing to accept smaller scale in return. Using the lesson's "Independence" factor, which form best fits and why?
Answer & Solution
Correct answer: C.
1. Independence is the sixteenth factor in the lesson.
2. The lesson states companies are subject to strict government regulation.
3. So an entrepreneur wanting freedom from interference should pick sole proprietorship or partnership.
4. Listed companies face heavier regulation, not less, and Section 8 companies are still under MCA oversight.
5. OPCs enjoy some concessions but are not exempt from the Companies Act.
_Source: ICSI CS Executive Paper 3 (Setting up of Business Entities and Closure) — Lesson 1: Choice of Business Organisation, pp. 2-11._
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