The benefits of the joint Hindu family business are as follows:
- Effective Control: The decision making power lies in the hands of the karta which helps avoid conflicts among members as nobody has the authority to interfere with his right to decide. This also leads to appropriate and flexible decision making.
- Continued Business Existence: The demise of the karta does not have an effect on the business as the next eldest member will take up the position. Therefore, operations are not terminated and there is no threaten to the continuity of business.
- Limited Liability of Members: The liability of all the co-parceners excluding the karta is limited to their share in the business, and accordingly their risk is well-defined and precise.
- Increased Loyalty and Cooperation: As the business is run by the members within the family, there is a great sense of loyalty towards each other. The members take pride in the growth of business associated with the achievements of the family, that leads to better cooperation from all the members.