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Statement I: The secrets of business are known to the Karta only. Statement II: The Karta is the head of the family. - Commercial Applications

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Question

Statement I: The secrets of business are known to the Karta only.

Statement II: The Karta is the head of the family.

Options

  • Both I and II are correct.

  • Only II is correct.

  • Only I is correct.

  • Both I and II are wrong.

MCQ
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Solution

Both I and II are correct.

Explanation:

In a Joint Hindu Family business, the Karta is the head of the family and the sole manager of the business. The business’s secrets are known only to the Karta, ensuring utmost secrecy, as no other family members are privy to them. Thus, the Karta holds exclusive control and knowledge and is the key decision-maker in the family business. This confirms that both statements are true.

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Chapter 2: Ownership Structures - Sole Proprietorship and Joint Hindu Family Business - EXERCISES [Page 29]

APPEARS IN

C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 2 Ownership Structures - Sole Proprietorship and Joint Hindu Family Business
EXERCISES | Q I. 9. | Page 29
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