Question

In a sole proprietorship, decisions can be made ______, whereas in a joint Hindu family business, decisions are made by ______.

Options

• by consensus; family members jointly

• independently; the karta

• by majority vote; external consultants

• by board meetings; coparceners

Answer 1

In a sole proprietorship, decisions can be made independently, whereas in a joint Hindu family business, decisions are made by the karta.

Explanation:

In a sole proprietorship, the sole proprietor makes decisions independently and has full control of the business. In contrast, in a joint Hindu family business, management and decision-making are centralized in the hands of the karta, the head of the family who controls business activities. The karta is authorized to make crucial decisions without consulting other members, providing quick, undisputed control over business operations.