Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Forms of Business Organisation

Question:

Who controlled the business of Joint Hindu family?

Options:

Karta

Co-parceners

Minor Member

Majority of male members

Correct Answer:

Karta

Explanation:

The correct answer is option 1- Karta.

Joint Hindu family business refers to a form of organisation wherein the business is owned and carried on by the members of the Hindu Undivided Family (HUF). It is governed by the Hindu Law. The basis of membership in the business is birth in a particular family and three successive generations can be members in the business. The business is controlled by the head of the family who is the eldest member and is called karta. The control of the family business lies with the karta. He takes all the decisions and is authorised to manage the business. His decisions are binding on the other members. All members have equal ownership right over the property of an ancestor and they are known as co-parceners.