Multiple Choice Questions on The karta in Joint Hindu family business has ........ for Commerce ( 11 and 12th) Preparation

Chapter-2 Forms of business organization

Business Studies(11th)

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    The karta in Joint Hindu family business has

    Limited liability

    Incorrect Answer

    Unlimited liability

    Correct Answer

    No liability for debts

    Incorrect Answer

    Joint liability

    Incorrect Answer
    Explanation:

    The karta is the eldest male member of a Joint Hindu family who is responsible for decision making in the family business. He needs no permission from the coparceners (joint heirs) before taking any action. Since the karta has complete control over the business, his liability is unlimited. On the other hand, the liability of all coparceners is limited to their share in the family business.


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