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Question

In a HUF business, the liability of the karta is _______________.

A
Limited to the extent of share of co-parceners
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B
Limited to the extent as may be determined by relatives
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C
Unlimited
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D
(a) or (b)
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Solution

The correct option is C Unlimited
In a HUF business, the liability of the karta is unlimited. The affairs of the business are managed by the head of the family, known as karta. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

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