A joint family consists of a husband and wife, their sons, their unmarried daughters, and their sons’ wives and children. … A Hindu undivided family or HUF is a legal term related to the Hindu Marriage Act. The female members are also given the right of share to the property in the HUF.
What is a joint Hindu family business?
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 is joint Hindu family business explain its features?
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 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.
Why is joint Hindu family business important?
Increased loyalty and cooperation : In a Joint Hindu Family Business, chances of great coordination among the members are more because they all belong to the same family. Hence, chances of loyalty towards business are more as compared to other forms of organisations.
Who controls the joint Hindu family business?
The business of the Joint Hindu Family is controlled and managed by one person who is called ‘Karta’ or ‘Manager’. The Karta or manager works in consultation with other members of the family but ultimately he has a final say.
What is the disadvantage of joint hindu family business?
Demerits of Joint Hindu Family Business: Limited Resources: The capital is limited only up to the resources of one family. No outside members other than family members can be introduced to the HUF. Thus the joint Hindu family business faces the problem of limited capital as it depends mainly on ancestral property.
Can joint hindu family business be terminated?
The formation of a joint hindu family business requires at least two members in the family and ancestral property to be inherited by them. … The business can, however, be terminated with the mutual consent of the members.
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.
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.
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.
What are the aims and objectives of joint Hindu family business?
Joint Hindu Family Firm is created by the operation of law. It is governed by the Hindu Succession Act, 1956. In Joint Hindu Family business ‘Karta’ is the decision maker of the business. Joint Hindu family business act was build to empower the traditional business of the Hindu community.
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 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.