State any four limitations of HUF.
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Explanation:
Four limitations of HUF :-
1). With limited capital, the chances of expansion are very low.
2). It limits the scope of the business.
3). While the Karta has all the power he also has the burden of unlimited liability.
4). This may make him overly cautious and timid in his business dealings.
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Answer: Disadvantages of the HUF
With limited capital, the chances of expansion are very low. It limits the scope of the business. While the karta has all the power he also has the burden of unlimited liability. This may make him overly cautious and timid in his business dealings.
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