Commercial Applications
In a sole proprietorship, decisions can be made ……………, whereas in a joint Hindu family business, decisions are made by …………… .
- By consensus; family members jointly
- Independently; the karta
- By majority vote; external consultants
- By board meetings; coparceners
Sole Proprietorship
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Answer
Independently; the karta
Reason — In a sole proprietorship, the proprietor is completely free to take decisions independently without consulting anyone. In a joint Hindu family business, the karta alone is authorised to take all important decisions, and no other member of the family can interfere in management.
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Related Questions
In a sole proprietorship, the business and the owner are considered …………… .
- Two separate legal entities
- A single legal entity
- Governed by different laws
- Managed under a partnership deed
In a joint Hindu family business, all members have equal liability, including the karta.
- True
- False
The Sharma family runs a successful spice business that has been operating for generations. Customers trust their products because of the business's long-standing reputation. Which advantage of joint Hindu family business is illustrated in this case?
- Incentive to work hard
- Ancestral goodwill
- Ease of formation
- Quick decisions
Which form of business ownership is represented in the image?
- Joint Hindu Family Business
- Partnership
- Sole Proprietorship
- Public Limited Company