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In a joint Hindu family business, all members have equal liability, including the karta. - Commercial Applications

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Question

In a joint Hindu family business, all members have equal liability, including the karta.

Options

  • True

  • False

MCQ
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Solution

False

Explanation:

In a Joint Hindu Family Business:

  • Karta, who is the head of the family, is responsible for everything, and his personal property can be used to pay off business bills.
  • All the other coparceners (members) are only responsible for the debts they owed on the ancestral land.
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Chapter 2: Ownership Structures - Sole Proprietorship and Joint Hindu Family Business - EXERCISES [Page 30]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 2 Ownership Structures - Sole Proprietorship and Joint Hindu Family Business
EXERCISES | Q I. 16. | Page 30
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