Question

The disadvantages suffered by Joint Hindu Family business are:

Options

• Hasty Decisions

• Unlimited Liability

• Limited Capital

• All of these

Answer 1

All of these

Explanation:

The Joint Hindu Family business suffers from several disadvantages:

1. It has limited capital because it is confined to the ancestral property, which is divided as family members increase, restricting business expansion.
2. The karta (manager) has unlimited liability, meaning their personal property is liable for business debts.
3. Decisions may be hasty because the karta alone manages the business and can become overburdened, leading to unbalanced decisions.
4. Hence, the disadvantages include limited capital, unlimited liability, and hasty decisions collectively.