Question

Which of the following options regarding Joint Hindu Business Family is wrong?

Options

• Basis of formation : By Birth

• Division of profit : Unequal share

• Management : Only by Karta

• Application of law : Hindu Succession Act

Answer 1

Division of profit : Unequal share

Explanation:

In a Joint Hindu Family business, the profit is typically shared equally among the members (coparceners), not unequally. The basis of formation is by birth, the management is carried out by the Karta, and the applicable law is the Hindu Succession Act. Thus, unequal profit division is incorrect as profits are equally shared among members.