Question

Explain the following statements: "In Sole Proprietorship form of business, there is lack of business continuity." "The proprietor has unlimited liability in Sole Proprietorsip form of business" "In Joint Hindu Family Business, the Karta has unlimited liability while other members have limited liability."

Answer 1

in the sole proprietorship there is lack of business continuity and has unlimited liability as there is only one person take all the responsibilities.he become the head and the only person who take his business.Here there is a lack of business continuity because if the person will die then the busness cannot will be any more present.
In joint hindu family the head which is karta has the mostly unlimited liabilities and the other members have limited liability as here in it the head is karta and the other members have limited liability because the liabilities are already divided and given to them separately so that they have to done only that much neither less nor more.