Quiz on Joint Hindu Family Business

What is the minimum number of members required for a joint Hindu family business?

• Four

• Three

• Two

• One

Who has unlimited liability in a joint Hindu family business?

• Next eldest member

• Karta

• Minors

• All members

Who has the control of the family business in a joint Hindu family setup?

• Minors

• Next eldest member

• Karta

• All members

What happens to the business after the death of the karta in a joint Hindu family business?

• Business is terminated

• Next eldest member takes over

• Minors take over

• All members leave the business

What is the main advantage of effective control by the karta in a joint Hindu family business?

• Limited liability

• Interference by other members

• Flexible decision making

• Conflicts among members

What is a limitation of a joint Hindu family business due to limited resources?

• Scope for expansion

• Decreased profits

• Unlimited capital

• Ancestral property

What is a disadvantage of the karta in a joint Hindu family business?

• Limited liability

• Decreased profits

• Limited managerial skills

• Unlimited liability

What may cause conflict among members in a joint Hindu family business?

• Decreased cooperation

• Dominance of karta

• Limited resources

• Increased loyalty

Why is the joint Hindu family business on the decline?

• Increasing number of joint Hindu families

• Decreasing number of joint Hindu families

• Stable business operations

• Improved managerial skills

What is the main advantage of loyalty and cooperation in a joint Hindu family business?

• Limited liability

• Decreased profits

• Limited resources

• Increased loyalty