Module: General Practice
Q127: Regarding the Hindu Undivided Family (HUF) as a form of business organization, which of the following statements is NOT correct?
✅ Correct Answer: D
Correct Option: D. Concept: Hindu Undivided Family (HUF). Reasoning: Why D is the Exception: HUF is a status governed by Hindu Law, not the Companies Act.
There is no requirement to register an HUF with the Registrar of Companies (RoC). It comes into existence through the joint family status.
Structural Rules: Karta: The eldest member manages the business and has Unlimited Liability (Option B is correct). Co-parceners: Other members have liability only up to the extent of their share in the ancestral property (Option C is correct).
There is no requirement to register an HUF with the Registrar of Companies (RoC). It comes into existence through the joint family status.
Structural Rules: Karta: The eldest member manages the business and has Unlimited Liability (Option B is correct). Co-parceners: Other members have liability only up to the extent of their share in the ancestral property (Option C is correct).