Question:
What is the role of Karta in Joint Hindu Family business?
Answer:
In a Hindu Joint Family, the Karta or Manager occupies a pivotal and unique place. In that there is no comparable office or institution in any other system in the world. His office is independent and hence, his position is termed as sui generis.
Karta's position is sui generis. As had been explained earlier, his position/ office is independent and there is no comparable office in any system in the world.
- He has unlimited powers and even though he acts on behalf of other members, he is not a partner or agent.
- He manages all the affairs of the family and has widespread powers.
- Ordinarily he is accountable to none. The only exception to this rule is if charges of misappropriation, fraud or conversion are levelled against him.
- He is not bound to save, economise or invest. That is to say that he need not invest in land if the land prices are about to shoot up, and hence, miss out on opportunities
etc. He has the power to use the resources as he wishes, unless the above mentioned charges are levelled against him.
- He is not bound to pay income of joint family in any fixed proportion to other members. This means that the Karta need not divide the income generated from the joint family property equally among the family members. He can discriminate one member from another and is not bound to treat everyone impartially. Only responsibility is that he has to pay everyone something so that they can avail themselves of the basic necessities such as food, clothing, shelter, education etc. Karta's Liabilities:
Apart from all the unlimited powers that are bestowed upon the Karta, he also has liabilities thrust on him.
- Karta has to maintain all the members of the joint family properly. If there is any shortfall in his maintenance, then any of the members can sue for maintenance.
- He is responsible for marriage of all the unmarried members in the family. Special emphasis is laid with respect to daughters in this case.
- In case of any partition suit, the Karta has to prepare accounts.
- He has to pay taxes on behalf of the family.
- Karta represents the family in all matters including legal, religious and social matters.
Forms of Business Organisation
Q 1.
X is interested in the floatation of a company. Briefly discuss the steps he should take.
Q 2.
What is the role of Karta in Joint Hindu Family business?
Q 3.
Compare the status of a minor in a Joint Hindu Family Business with that in a partnership firm.
Q 4.
What is meant by ˜partner by estoppel'? Explain.
Q 5.
Define promoter. What are the functions of a promoter?
Q 6.
Explain meaning, features, merits and demerits of Sole Proprietorship.
Q 7.
Explain different types of partners.
Q 8.
Explain procedure of registering a partnership firm.
Q 9.
Explain procedure of registering a partnership firm.
Q 10.
Explain meaning, features, merits and demerits of partnership firm.
Q 11.
What are the steps required for raising funds from public?
Q 12.
Explain meaning, features, merits and demerits of joint stock company.
Q 13.
What do you mean by incorporation of a company? What are the steps involved in corporation of a company?
Q 14.
State the important privileges available to a private company.
Q 15.
Discuss the characteristics, merits and limitations of the cooperative form of organization. Also describe briefly different types of cooperative societies.
Q 16.
For which of the following types of business do you think a partnership firm of organization would be more suitable, and why?
(i) Grocery store (ii) Medical store
(iii) Legal consultancy (iv) Craft centre
(v) Internet cafe (vi) Chartered accountancy firm
Q 17.
Define Articles of Association. What are its contents?
Q 18.
Explain the contents of Memorandum of Association.
Q 19.
Is registration of partnership firm compulsory? What are the consequences of non-registration?
Q 20.
Distinguish between a Joint Hindu family business and partnership.
Q 21.
What do you understand by a.sole proprietorship firm? Explain its merits and limitations.
Q 22.
Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organization. Why?
Q 23.
Distinguish between a Joint Hindu family business and partnership.
Q 24.
Explain the concept of mutual agency in partnership with suitable example.
Q 25.
For which of the following types of business do you think a sole proprietorship firm of organization would be more suitable, and why?
(i) Grocery store (ii) Medical store
(iii) Legal consultancy (iv) Craft centre
(v) Internet cafe (vi) Chartered accountancy firm
Q 26.
Explain the meaning, features, merits and demerits of cooperative society.
Q 27.
Explain different types of partners.
Q 28.
Explain the following terms in brief:
(i) Perpetual succession (ii) Common seal
(iii) Karta (iv) Artificial person
Q 29.
If registration is optional, why do partnership firms willingly go through this legal formality and get themselves registered? Explain.
Q 30.
How does a cooperative society exemplify democracy and secularism? Explain.
Q 31.
Why is partnership considered by some to be a relatively unpopular form of business ownership? Explain the merits and limitations of partnership.
Q 32.
Differentiate between:
- Memorandum of Association and Articles of Association.
- Private and Public Company
