Does the joint Hindu family business decline with the death of a member?

The death, lunacy or insolvency of any member of the family does not affect the existence of the business of Joint Hindu Family. The family goes on doing its business. The business can, however, be terminated with the mutual consent of the members.

What happens to joint Hindu family business if Karta or any other member dies?

The business continues to run in case of death of Karta or any other member of the family. … The business can, however, be terminated with the mutual consent of the members on their declaration that they are no longer a part of Joint Hindu family business.

Why joint Hindu family business is on the decline?

Answer: Joint Hindu Family Businesses or Hindu Undivided Family Business are on the decline due to the change in living patterns. Most people live in nuclear families,which goes against the main feature of JHFB.

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.

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What are features of joint Hindu family business?

The main characteristics of Joint Hindu Family Business are given below:

  • Governed by Hindu Law: The business of the Joint Hindu Family is controlled and managed under the Hindu law. …
  • Management: …
  • Membership by Birth: …
  • Liability: …
  • Permanent Existence: …
  • Implied Authority of Karta: …
  • Minor also a Partner: …
  • Dissolution:

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 advantages of joint Hindu family business?

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:

How is profit distributed in joint Hindu family business?

In the company, profit is distributed according to the number of shares of the members. In Joint Hindu Family Business, distribution of profit is equal in all members. Capital is contributed by large financial resources. Ancestral property can be transferred to create a capital in joint Hindu Family Business.

What is the basis of membership in joint Hindu family business?

The answer given by sheena is correct. The basis of membership in a Joint Hindu Undivided Family is birth in that particular family and three successive generation can be members in the business of Joint Hindu Undivided Family.

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