What are advantages and disadvantages of joint Hindu family business?
The whole power of Joint Hindu family business lies in the hands of Karta. Full power is centralized in the hands of Karta. No other member can interfere in Karta decisions. Karta may misuse his power & take decisions according to his interest.
What are the advantages of joint family business?
Effective control and Prompt Decision Making:
The. This avoids conflicts among members as no member can interfere with his right of karta to take a decision. The prompt decisions help the business to grab opportunities. Secrecy: In Joint Hindu Family Business, all the decisions are taken by the ‘Karta’ himself.
What are the features and merits of joint Hindu family?
Features/Characteristics of the Joint Hindu Family Business
it՚s not created by an agreement among family members. 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.
What is the feature of joint Hindu family business?
Characteristics of Joint Hindu Family Business:
There should be at least two male members in the family to form a HUF. Ancestral property should have been inherited by members of HUF. All of the members enjoy this property and have an equal share in that property.
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:
What are the two conditions for existence of joint Hindu family business?
For formation of the business, there should be at least two members are present at the time of formation and a hereditary property should be formed for Hindu Joint Family Business. Their membership is not created by an agreement in among individuals.
What are advantages and disadvantages of joint family?
In a joint family, one learns to accommodate others and share what they have. In a joint family, people do things together. They share the expenses, groceries, household appliances, and furnishings with the rest of the family. Kids are encouraged to share whatever they get with their siblings as well as cousins.
Who controls the joint Hindu family business?
The head of the joint hindu family business is known as Karta. Karta is usually the senior most male member of the joint family and he has the power to control the whole business.
What are the disadvantages of living in a joint family?
5 Disadvantages of Living in a Joint Family
- Privacy is Compromised. Lack of privacy is a common complaint among people who live in a joint family. …
- A small Decision Runs by Everyone. …
- Financial Responsibility. …
- Interference in Parenting. …
- Woes of a Common Kitchen.
What is the main cause of decline in joint Hindu family business?
Conflict or family quarrel has caused the breakdown of joint family system. Conflicts regarding family property, its income and expenditure, unequal distribution of work at home and personal clashes between women lead to the break-up of joint families.
Why is the joint Hindu family unique?
Joint Hindu Family Firm is created by the operation of law. It does not have any separate and distinct legal entity from that of its members. The business of Joint Hindu Family is controlled under the Hindu Law instead of Partnership Act.
How many types of joint are there in Hindu family business?
Here the liability of Karta is unlimited & rest all have liability as per their share in the business. Membership in business is acquired either by birth in family or marriage to a male member of the family. There are basically 2 types of joint Hindu family business: Mitakshara & Dayabhagha.