Question

Write the advantages and limitations of Hindu Undivided Family Business?​

Answer 1

Disadvantages of the HUF

• No outside members other than family members can be introduced to the HUF. ...
• While the Karta has all the power he also has the burden of unlimited liability. ...
• Also, the absolute dominance of the Karta overall business and financial decisions make cause conflict among the HUF.

Answer 2

Advantages:

Since the co-parceners do not have any effective control over the management of the HUF, and all power lies with the Karta, the liability of the members has also been limited to only their share of the property. This keeps the balance between power and responsibility.

Limitations:

The business of the Joint Hindu Family is controlled and managed by one person who is called 'Karta' or 'Manager'. ... The liability of Karta is unlimited while the liability of other members is limited to their shares in the business.