Commercial Applications
Statement I: All the male members of a Joint Hindu family business are known as coparceners.
Statement II: The oldest member is known as Karta.
- Only I is correct
- Both I and II are correct
- Only II is correct
- Both I and II are wrong
Answer
Both I and II are correct
Reason — Under the Hindu Succession (Amendment) Act, 2005, both males and females have the right to be coparceners or joint legal heirs in a Joint Hindu Family business. All family members having a share in family property are known as coparceners, and the oldest member of the family, regardless of gender, is called the karta.
Related Questions
Statement I: The proprietor is personally liable for all the debts of the firm.
Statement II: The life of sole proprietorship is uncertain.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong
In a joint Hindu family business, the karta passes away unexpectedly. However, the business operations continue without interruption as the eldest son takes over the role of karta. Which feature of joint Hindu family business does this demonstrate?
- Perpetual succession
- Limited liability
- Hasty decisions
- Ease of formation
The disadvantages suffered by Joint Hindu Family business are:
- Hasty Decisions
- Unlimited Liability
- Limited Capital
- All of these
Statement I: Expenses of management are high in Joint Hindu Family Business.
Statement II: The Karta alone is authorised to take all important decisions of the family business.
- Both I and II are correct
- Only I is correct
- Only II is correct
- Both I and II are wrong