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Question
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.
Options
Both I and II are correct.
Only I is correct.
Only II is correct.
Both I and II are wrong.
MCQ
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Solution
Only II is correct.
Explanation:
Expenses of management in a Joint Hindu Family Business are low because expenses of management are low, as the karta is the sole manager and controller of the business. Therefore, Statement I is incorrect.
Statement II is correct because the book clearly states that the karta alone is authorised to take all important decisions of the family business, and his decision is final.
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