Question

The Karta has unlimited liability is the demerit of which form of organisation ? ​

Answer 1

Answer:

Disadvantages of the HUF

Disadvantages of the HUFThis makes it very difficult to get additional capital from the market. 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.

Answer 2

Explanation:

In case of HUF business, only the karta has unlimited liability but in a partnership each partner has unlimited liability. The karta is the main decision maker in HUF, while each partner has equal say in decision making in a proprietorship.