Question

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?

Options

• Perpetual succession

• Limited liability

• Hasty decisions

• Ease of formation

Answer 1

Perpetual succession

Explanation:

In a joint Hindu family business, the death of the karta does not affect the business’s continuity. The eldest son or another coparcener takes over as the new karta, and the business operations continue without interruption. This feature is called perpetual succession, meaning the business has a continuous existence irrespective of changes in membership or the death of members. It ensures stability and continuity of the family business over generations.