Mr. Sanjay is the Karta of JHF business. He has the absolute power of taking business decisions and his decisions are binding on the other members, once he took a wrong decision of buying a machinery which soon got-obsolute and the business suffered the heavy loss.
(i)Identify and explain limitation of JHF highlighted here.
(ii)What are the options available to co-parceners to avoid this situation.
(iii)Enlist any two values communicated by JHF business.
(i)Dominance of Karta : Tha karta individually manages the business and takes all the decission and co-parceness can’t go against his decision.
(ii)If the co-parceners are not satisfied with the performance of Karta, with the mutual consent of members can terminate the business.
(iii) The values communicate by JHF are sense of loyalty towards one other and pride in growth of business.