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Dear Pralay,

You have not mentioned the religion of the deceased, in such case I am assuming the deceased as a Hindu and Accordingly answering your query. The Hindu Succession classifies the wife and son of the deceased under Class 1 heirs, similarly the father of the deceased is classified under as class 2 heirs. The property of the deceased is first distributed to class 1 heirs and subsequently to class 2 heirs. Further   you did not mention the age of the child, if he /she is a minor, then the mother will be the guardian of the child and the child's share of property, till the child attains majority, if the child is a major, then the question of guardianship does not arise. However, if the Grandfather of the child can prove to the court that custody of the child and property with the mother of the child is detrimental to the interests of both the child and the property, then, the court may grant guardianship to the grandpa.  

Answer to query 2 that whether she can run her husband's business is negative, since she is a government servant and she is ruled by the relevant service rules of the department where she is working.