Commercial Applications
Statement I: The existence of a joint Hindu family business is not threatened by the death or incapacity of any member or the Karta.
Statement II: The Joint Hindu family comes to an end only after the total breakdown of the Joint family.
- Both I and II are wrong
- Both I and II are correct
- Only I is correct
- Only II is correct
Sole Proprietorship
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Answer
Both I and II are correct
Reason — Both statements describe the feature of 'Continuity' of joint Hindu family business. The existence of the business is not threatened by the death or incapacity of any member or the karta. It is stable and comes to an end only after the total breakdown of the joint family.
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Related Questions
How profit is distributed in Joint Hindu Family Business?
- Men have more share than women
- The older members of family receives more profit than younger members
- Equal shares for all of them
- Only the Karta has all the profit
Statement I: The secrets of business are known to the Karta only.
Statement II: The Karta is the head of the family.
- Both I and II are correct
- Only II is correct
- Only I is correct
- Both I and II are wrong
Which of the following options regarding Proprietorship is wrong?
- Basis of formation : No agreement
- Number of members : No maximum limit
- Management : By the Sole Proprietor
- Application of Law : The Contract Act
Which of the following options regarding Joint Hindu Family Business is wrong?
- Basis of formation : By Birth
- Division of profit : Unequal share
- Management : Only by Karta
- Application of law : Hindu Succession Act