The correct answer is option 'B' - Municipal Corporation.

Explanation:
In most countries, including India, the licensing of shops and establishments is primarily the responsibility of the local government bodies, such as the Municipal Corporation. Here's a detailed explanation of why the correct answer is option 'B':

1. Licensing of Shops and Establishments:
- The licensing of shops and establishments is a regulatory measure implemented by the government to ensure that these businesses operate in compliance with certain rules and regulations.
- This includes ensuring the safety, hygiene, and overall welfare of the employees and customers, as well as maintaining the overall orderliness of the business premises.
- The licensing process typically involves obtaining permission from the appropriate government authority to legally operate the business.

2. Role of State Government:
- While the state government does play a role in regulating and overseeing the licensing process, it is the local government bodies that are primarily responsible for issuing licenses to shopkeepers.
- The state government establishes the legal framework and guidelines for the licensing process, but the actual implementation and enforcement are carried out by the local government bodies.

3. Role of Municipal Corporation:
- The Municipal Corporation is a local governing body responsible for the administration of a specific city or town.
- It is the Municipal Corporation that grants licenses to shopkeepers within their jurisdiction.
- The licensing process typically involves the submission of relevant documents, payment of fees, and inspections to ensure compliance with safety and hygiene standards.

4. Other Options:
- Option 'A' - State government: While the state government does have a role in establishing the legal framework for licensing, they do not directly issue licenses to shopkeepers.
- Option 'C' - Central government: The central government is primarily responsible for formulating and implementing national-level policies and regulations. The licensing of shops and establishments is usually handled at the local level by the Municipal Corporation.
- Option 'D' - Court: Courts are not responsible for granting licenses to shopkeepers. They may come into the picture if there are legal disputes or violations related to the licensing process or the operation of the business.

In conclusion, the correct answer is option 'B' - Municipal Corporation, as they are the local government bodies responsible for issuing licenses to shopkeepers within their jurisdiction.