Question

In the following question, there is a statement given followed by two conclusions numbered I and II. Read the conclusion and then decide which of the given conclusions follows from the statement.
Statement: Joint Hindu family business is a business owned and carried on by the members of a Hindu Undivided Family, which is governed by the Hindu law. Karta —the oldest male member of the family— controls the business. The strong points of joint Hindu family business include effective control, stability in existence, limited liability and increased loyalty among family members. But this form of organisation too suffers from certain limitations such as limited resources, lack of incentives, dominance of the karta and limited managerial ability.
Conclusion I. No other law is applicable to Joint Hindu Family Business except Hindu Law.
Conclusion II. One person can dominate the business and thus very susceptible for making wrong decisions.

• A. Only conclusion I follows
• B. Only conclusion II follows
• C. Neither conclusion I nor conclusion II follows
• D. Both conclusion I and II follow

Answer 1

The Correct Option is B

The correct option is (B): Only conclusion II follows