Question

Karta is the most active member in case of hindu undivided family business. Comment

Answer 1

1)The Karta is the manager of HUF and have wide powers by way of controlling the affairs of the HUF. 

2)The Karta enjoys his position in the HUF by operation of law without any agreement and consent of other members of HUF. He stands in a fiduciary relationship with other members, but he is not accountable to anyone.

3)The Karta is entrusted not only with the management of properties of the family but is also entrusted with the general welfare of the family.

4)Karta is the head of the family and acts on the behalf of all members of the family but an agent of members of the family.

from above points its clear that Karta is the most active member in case of hindu undivided family business .

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Answer 2

Answer :

HINDU JOINT/UNDIVIDED  FAMILY - This is the model of business where the business is owned, ran and managed by the whole family . The concept of the business is applied basically to the business which is running down the line of family generations.

Like other business, Hindu joint family follows up the rules and regulations where accountability and answerability are obliged.

In a Hindu joint family,  "KARTA" is the leader or the manager who is in charge of managing and taking important decisions about the business and its tactics. Karta is the one with unlimited liability. So, Karta is labeled as active member of this business model.