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Karta ki joint liability kab hoti …

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Karta ki joint liability kab hoti hai

Posted by Ankit Chahar 3 years, 11 months ago

CBSE > Class 11 > Business Studies

1 answers

Sia ? 3 years, 11 months ago

The Karta has unlimited liability. The liability of all other members of Joint Hindu Family Business is limited to the extent of their share in the property of the family business.
Karta is responsible for taking decisions and all other members need to follow his instructions. Only the karta has legal rights to enter into contract with outsiders. So if he takes a wrong decision it is his fault and he would have to pay off the debts by selling personal assets if there are inadequate funds in the business.

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