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.
Who controls the joint hindu family business answer?
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 is called joint family?
A joint family (also undivided family, joint household, extended family system) is a large undivided family where more than one generation live together in a common house. A joint family is a form of family where the grand-parents, father, mother, and children live unitedly under one roof.
How many members are in a joint family?
1. A joint family consists of a minimum of three generations—grandparents, parents and children. 2. All members of a joint family live under one roof, and form one single household.
What is the main cause of decline in joint Hindu family business?
Explanation: 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.
What are the two conditions for existence of joint Hindu family business?
1) Two male members should be there in the business of HUF. Thus, one person cannot start this type of business. 2) Condition related to property inherited by a Hindu Family from his great grandfather.
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.
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 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:
What is the role of Karta in joint Hindu family business?
Responsibilities of Karta:
The most basic duty of a Karta is to provide food, shelter, clothing, etc. To the members of the joint family. His many responsibilities include: Maintenance: all coparceners, from the head of the family to the younger members, have the intrinsic right to maintenance.
What are the 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: …