Mohammed Asrar

The Karta has unlimited liability, meaning their personal property can be used to repay business debts.

There is limited access to capital, as the Karta’s personal funds may not be enough for business expansion.

The Karta holds excessive power, so an incompetent Karta can negatively affect the business.

Though it has limitations, this form of organisation provides economic security and status to family members and still holds importance in Indian business.