What do you mean by joint Hindu family business explain its characteristics?

It does not have any separate and distinct legal entity from that of its members. … The membership in this form of business organisation can be acquired only by birth or by marriage to a male person who is already a member of Joint Hindu Family.

What are the characteristics of joint Hindu family?

Forms of Business Organization

Basis Joint Hindu Family Business
Liability of Members The liability of Karta is unlimited but the liability of members is limited.
Management The business is controlled by the head of the family who is the oldest member and is called Karta.
Secrecy Karta maintains secrecy.

What are the four features of joint Hindu family business?

All the affairs of a Joint Hindu Family are controlled and managed by one person who is known as ‘Karta’ or ‘Manager’. The Karta is the senior most male member of the family. The members of the family have full faith and confidence in Karta. Only Karta is entitled to deal with outsiders.

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What is joint family business?

when members of a joint family by their joint labour or in their joint business acquired property, that property … conducted by a member of the joint family is a joint family business.

What do you mean by joint Hindu family business how is it different from that of partnership?

A partnership firm is controlled by two or more persons called ‘Partners’. In Joint Hindu Family ‘Firm, the Joint Hindu Family conducts business according to Hindu Laws. A minimum of two members are needed for starting a business. … Membership of the firm depends upon the birth and death in the family.

Which among the following is the main characteristics of Hindu undivided family business?

Features of a HUF

The formation of a HUF does not require any documentation and admission of new members is by birth. Liability: The liability of all the various co-parceners is only up to their share of the property or business. So they have limited liability.

What are the characteristics of business?

The following are the ten important characteristics of a business:

  • Economic activity: Business is an economic activity of production and distribution of goods and services. …
  • Buying and Selling: …
  • Continuous process: …
  • Profit Motive: …
  • Risk and Uncertainties: …
  • Creative and Dynamic: …
  • Customer satisfaction: …
  • Social Activity:

What is joint Hindu family business explain its features merits and limitations?

Management: The management vests in the Karta, the eldest member of the family. The Karta may associate other members of the HUF to assist him. Liability: The Karta has unlimited liability. No Maximum limit: There is no restriction on the number of coparceners of the HUF business.

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What is meant by Karta of joint Hindu family business?

The karta is the eldest member of the family and hence is the controller of the business. The liability is with all members except the karta is limited to their share of co-parcenery property of the business. The karta, however, has unlimited liability.

What is joint Hindu family business class 11?

Meaning of Joint Hindu Family Business

It refers to a form of business organization which is owned and carried on jointly by the members of the Hindu Undivided Family (HUF). It is also known as Hindu Undivided Family Business.

What are the examples of joint Hindu family business?

Some examples of HUF are TATA Group and Haldiram. Lot of joint Hindu family business are divided into family members during last 30 years or so.. Ambani..after Dhirubhai decided in to two ..but interesting fact is that next generation join it making it again joint family.

What are the advantages of joint Hindu family business?

Advantages of Joint Hindu Family Business:

  • Easy to Start: It is very easy to start the Joint Hindu Family Business. …
  • Efficient Management: …
  • Secrecy: …
  • Prompt Decision: …
  • Economy: …
  • Credit Facilities: …
  • Natural Love between Members: …
  • Freedom regarding Selection of Business:

What is called business?

The term business refers to an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or they can be non-profit organizations that operate to fulfill a charitable mission or further a social cause.

How is sole proprietary business different from joint Hindu family business?

In Joint Hindu Family Business, distribution of profit is equal in all members. In a sole proprietorship, there is only one member who manages all business operations. Ancestral property can be transferred to create a capital in joint Hindu Family Business. Sole proprietorship can’t exist without the owner.

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How is a joint Hindu family different from a partnership differentiate on six distinctive bases?

In partnership firm members will have no right by birth. In Hindu joint family business son gets right by birth. Every partnership firm is governed by the provisions of Indian Partnership Act,1932, Indian Contract Act 1872 etc. Every Joint family Firm is governed by the codified Hindu Laws.