1.Effective control : The decision making power lies only with the Karta and no other member has the right to interfere in his decision. Thus, the Karta can take prompt and flexible decisions that ensure effective control in the organisation.
2.Continued business existence : The operation of the business is not threatened by the death, insanity or imprisonment of the Karta because in the eventuality of any mishappening with the Karta, the next eldest member takes up his position.
3.Limited liability of members: Except the Karta, the liability of other members is limited to the extent of their share in the business.
4.Increased loyalty and cooperation : In a Joint Hindu Family Business, chances of great coordination among the members are more because they all belong to the same family. Hence, chances of loyalty towards business are more as compared to other forms of organisations.