Question

Section C
Q 17 Mahesh Chandra Sharma operates an iron and steel business for last 25 years His
family is joint and has a lot of ancestral property. All the 20 family members are a
part of this business. He is the eldest male member in the family so he heads the
business. He is liable to all the creditors of the business as he is the decision maker.
Sharma's grandson was born a few days ago and he is also a member of the business
On basis of the given information about Mahesh Chandra Sharma , answer the
following questions :
(i) Which form of businesses is being undertaken by Mahesh Chandra Sharma.?
Explain any five features of the form of the business identified in part (i).
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Answer 1

Answer:

joint hindu family or undivided family

Explanation:

features :-

1. liability :- karta (eldest member) is liable for all external liability

2. members should have limited liability ( except karta)

3. it is started under the hindu law 1956

4. it is started with minimum 10 members of family

5. minor partner is allowed but only with the provision to take part in profit