Enterprise Launch and Management Functions
Domain focus
This section covers Enterprise Launch and Management Functions. The exam tests ownership forms, registration and compliance, the launch sequence, and the functions of management.
Core rules and concepts
- Forms: sole proprietorship (easy, unlimited liability), partnership (Indian Partnership Act 1932), LLP (LLP Act 2008, limited liability) and private limited company (Companies Act 2013).
- Launch sequence: validate the idea, choose name and form, arrange finance and premises, register on Udyam and obtain GST/licences where applicable, recruit, start operations and control.
- Management functions: planning, organising, staffing, directing and controlling; coordination runs through all.
- Launch is not complete at registration; production or service delivery and customer acquisition must begin.
Worked example
Two friends open a café. They choose an LLP for limited liability and shared capital, draft an agreement, register the LLP, obtain an FSSAI licence and Udyam registration, split roles between operations and marketing, set a monthly budget and review wastage weekly. Reasoning: the form follows liability and capital needs; licences match the food business; weekly wastage review is the controlling function.
Traps that cost marks
Do not think registration equals launch. Do not confuse an LLP with an ordinary partnership. Do not ignore liability. Do not omit controlling after starting operations.