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Forms of Business Organization
Question
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Only the Karta has unlimited liability in HUF. Explain.

Answer

  • In the case of HUF, if the business suffers from losses, then losses can be recovered from Karta's personal property.
  • The co-partners are responsible to bear the losses upto the extent of their share on profit.
  • Losses cannot be recovered from their personal property

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Some More Questions From Forms of Business Organization Chapter

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