What is joint Hindu family business explain its merits?

Easy to Start: -Joint Hindu Family business is very easy to form. It comes into existence as per Hindu law. Family members become co-parceners in the firm by virtue of their birth in the family. Moreover no registration is required for a Joint Hindu Family firm respect of minimum or maximum members.

What are the merits of HUF business?

What are the merits of a Joint Hindu Family Business?

  • The Karta has full control over the business activities and takes a decision quickly.
  • No one can interfere in the decision of Karta as every member is bound to accept his decision.
  • Hence, it avoids clashes among the members and results in very speedy decision making.

What are the merits of Joint Hindu Family?

Merits of Joint Hindu Family Firm:

  • Stability: The existence of the Joint Hindu Family firm does not come to an end by the death, insanity, or bankruptcy of any coparcener.
  • Management: The organisation, management, and control of the business is vested in the karta of the family. …
  • Liability: …
  • Membership: …
  • Credit worthiness:
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What is a Joint Hindu Family business?

Joint Hindu Family (HUF) is a form of business organization wherein the members of a family can only own and manage the business. It is governed by Hindu Law. Karta of the HUF is the Head of the family who is authorized to do business on behalf of the HUF. A HUF is also allowed to purchase assets in its name.

What are the merits and demerits of HUF?

Write 4 merits and demerits of HINDU UNDIVIDED FAMILY.

  • Easy formation: -Formation of Joint Hindu family is very easy. …
  • Quick decisions and prompt action: -The Karta is the sole manager of the business and head of the family. …
  • Flexibility in operation: -The management is in the hands of the Karta.

What are the merits and demerits of Joint Hindu family business?

Merits of joint Hindu family Business

  • Stability. Joint Hindu Family Business is more stable than other business. …
  • Management. Joint Hindu Family Business, management and control of the business by Karta of the family. …
  • Liability. …
  • Membership. …
  • Limited Funds. …
  • Lack of Management Skill. …
  • Unlimited Liability. …
  • Limited Membership.

What are the merits and limitations of Joint Hindu family business?

Merits

  • Effective control. The Karta has absolute decision making power. …
  • Stability in existence. The death of the Karta will not affect the business as the next eldest member will then take up the position. …
  • Limited liability of members. …
  • Increased loyalty and cooperation.

Which of the following is not the advantage of Joint Hindu Family business?

The youngest member of the family is Karta is not the characteristic of Joint Hindu Family Business. Explanation: The ‘Joint Hindu family business’ is very popular in India. It is ruled by the ‘provisions of the ‘Hindu Law’.

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What are the disadvantages of Joint Hindu Family business?

Disadvantages of Joint Hindu Family Business:

  • Limited Membership: The membership of the business is limited to the members of family only. …
  • Limited Sources of Capital: The capital is limited only upto the resources of one family. …
  • Limited Managerial Skill: …
  • Unlimited Liability: …
  • Misuse of Power:

Who is Karta in the Joint Hindu Family business?

The ‘karta’ in Joint Hindu family business has Unlimited liability. Karta is the person who has full control over the Hindu Undivided Family business. Karta can take advice from all the members but he is not bound to accept their decisions.