Why Karta has an unlimited liability in the joint Hindu family business?

Answer: (b) The joint Hindu family business is controlled by the head of the family who is the eldest member and is called Karta. The karta has unlimited liability while the liability of all other members is limited to their share of co-parcenery property of the business.

Why is the liability of the Karta of a HUF unlimited?

Only the Karta has unlimited liability in HUF. … In the case of HUF, if the business suffers from losses, then losses can be recovered from Karta’s personal property. The co-partners are responsible to bear the losses upto the extent of their share on profit.

What is the liability of Karta and co Parceners in joint Hindu family business?

According to it the business is owned and managed by the karta, the head of the family and the members of the family are its co parceners. Hence, the head of the family business is called as karta. The liability of coparcener is limited whereas the liability of karta is unlimited.

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What is Karta unlimited liability?

The Karta of the family has unlimited liability, also he is not responsible to any member of the family except in case of fraud or misappropriation. Although the senior-most male member of the family is the Karta, a junior member can also become the Karta if all the coparceners agree to it.

How Karta has unlimited liability?

Answer: (b) The joint Hindu family business is controlled by the head of the family who is the eldest member and is called Karta. The karta has unlimited liability while the liability of all other members is limited to their share of co-parcenery property of the business.

What is the main cause of decline in joint Hindu family business?

Explanation: Conflict or family quarrel has caused the breakdown of joint family system. Conflicts regarding family property, its income and expenditure, unequal distribution of work at home and personal clashes between women lead to the break-up of joint families.

What is the legal position of Karta in a joint Hindu?

Karta means manager of joint family and joint family properties. He is the person who takes care of day to day expenses of the family looks after the family and protects the joint family properties.

Who Cannot be a Karta?

2. Junior male member: In the presence of a senior male member, a junior male member cannot be the Karta. However, with the consent of all the coparceners, a junior male member can be appointed as a Karta.

Who becomes Karta in joint Hindu family?

In a family consisting of the father and his children, father is the Karta when he dies his eldest son becomes the Karta. Thus in a joint family consisting of brothers the eldest brother is the Karta. It is open to the senior member to give up his right of Management. Then one junior to him can become the Karta.

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Who becomes the Karta in joint Hindu family business?

The business is managed by the head of the family (eldest member) and he is called Karta. However, all the members hold equal ownership over the property of an ancestor and they are called as co-parceners.

Who among the following can be beneficiary of business and don’t have unlimited liability?

Answer: Explanation: A minor partner is one who is below 18 years. Therefore he is not eligible to join the partnership firm but if knowingly other partners are allowing him to enter into a partnership firm as a partner, he’s not liable to pay any liabilities but has the equal or agreed share in the profits.