Business Studies

Which of the following can be treated as disadvantage of HUF form of business?


ANSWER

An inefficient karta can do harm to the business.


SOLUTION
Despite having various advantages, the HUF form of business has disadvantages as well. One of them could be misuse of power. Since the karta has absolute freedom to manage the business, there is a scope for him to misuse it for his personal gains. An inefficient karta can do harm than good to the business.
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