Question: How is the joint Hindu family business managed after Karta’s death?

After the “Karta” is deceased, the very next eldest member takes up the position of Karta in Hindu Undivided Family business. The business can be divided and ended up by the mutual consent of the members.

What happens to Joint Hindu Family business if Karta dies?

What happens to Joint Hindu Family Business if Karta or any other member dies ? Business will continue . The next elder member will become karta and his liability will be unlimited rest others liability will be limited and business will continue.

Can Joint Hindu Family business be terminated?

The formation of a joint hindu family business requires at least two members in the family and ancestral property to be inherited by them. … The business can, however, be terminated with the mutual consent of the members.

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Who controls the Joint Hindu Family business?

The head of the joint hindu family business is known as Karta. Karta is usually the senior most male member of the joint family and he has the power to control the whole business.

How do you manage joint family business?

The management of a Joint Hindu Family Business is centralised in the hands of Karta of the family. No other member can interfere in his management.

Disadvantages of Joint Hindu Family Business:

  1. Limited Membership: …
  2. Limited Sources of Capital: …
  3. Limited Managerial Skill: …
  4. Unlimited Liability: …
  5. Misuse of Power:

What is Hindu joint family business?

Joint Hindu Family (HUF) is a form of business organization wherein the members of a family can only own and manage the business. It is governed by Hindu Law. Karta of the HUF is the Head of the family who is authorized to do business on behalf of the HUF. A HUF is also allowed to purchase assets in its name.

What is the main cause of decline in joint Hindu family business?

The main reason is a Diminishing number of Joint Hindu families .

What is the limitations of Joint Hindu Family business?

Demerits of Joint Hindu Family Business: Limited Resources: The capital is limited only up to the resources of one family. No outside members other than family members can be introduced to the HUF. Thus the joint Hindu family business faces the problem of limited capital as it depends mainly on ancestral property.

What happens to HUF after death of Karta?

Answer 1: Yes, on demise of the Karta, the eldest Coparcener automatically becomes the Karta of the HUF. The new Karta however needs to inform the relevant authorities [Income Tax Department, Banks, etc.], about him being the new Karta of the HUF.

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What is the liability of Karta in Joint Hindu Family business?

Explanation: The Karta of a joint Hindu family business has unlimited liability. It implies that his personal property can be used for paying debts of the business if business assets are not sufficient. The liability of coparceners is limited.

What is the responsibility of the members of the Joint Hindu Family leaving the Karta class 11?

Explanation: family members have a big responsibility to support their member and co operate the karta. And everyone should help the other members of the family .

What is the role of Karta in Joint Hindu Family business give any five points?

The most basic duty of a Karta is to provide food, shelter, clothing, etc. To the members of the joint family. His many responsibilities include: Maintenance: all coparceners, from the head of the family to the younger members, have the intrinsic right to maintenance.

Does the Joint Hindu Family business decline with the death of a member?

The death, lunacy or insolvency of any member of the family does not affect the existence of the business of Joint Hindu Family.

What do you mean by Joint Hindu Family business how is it different from that of partnership?

A partnership firm is controlled by two or more persons called ‘Partners’. In Joint Hindu Family ‘Firm, the Joint Hindu Family conducts business according to Hindu Laws. 2. Number of members. A minimum of two members are needed for starting a business.

Which of the following is the most appropriate basis to start a Joint Hindu Family business?

In case of a Joint Hindu Family, membership in the family business is by birth. This means that as soon as a boy child is born in a Joint Hindu Family, he is automatically entitled to a share in his family business.

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