What are the demerits of Hindu undivided family business?

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

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.

Which of the following is a limitation of joint Hindu family business?

ADVERTISEMENTS: Unlike partnership, there is no such limit to the membership of the Joint Hindu Family Firm. However, it is restricted to the three successive generations in the male line.

What is HUF full form?

Hindu Undivided Family (‘HUF’) is treated as a ‘person’ under section 2(31)​ of the Income-tax Act, 1961 (herein after referred to as ‘the Act’). HUF is a separate entity for the purpose of assessment under the Act.

What are the merits and demerits of joint family?

Merits and Demerits of Joint Family System in India (1572 Words)

  • Division of Labour: Joint family secures the advantages of division of labour. …
  • Economy in Expenditure: …
  • Protection from Division of Land: …
  • Social Security: …
  • Satisfaction of Basic Needs: …
  • Rearing of Children: …
  • Social Virtues: …
  • Social Control:
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What are the merits and demerits of joint stock company?

Joint Stock Company – Advantages and Disadvantages

  • (1) Huge Financial Resources:
  • (2) Efficient Management:
  • (3) Limited Liability:
  • (4) Transferability of Share:
  • (5) Diffusion of Risk:
  • (6) Stability:
  • (7) Public Confidence:
  • (8) Scope for Expansion:

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 is the example of joint Hindu family business?

There are several joint Hindu Family Business examples in India, which include Reliance Industries Limited and Mahindra and Mahindra Limited. All business dealings within a joint family business in India are regulated by the Hindu Law, and not the Partnership Act, which controls other business models.

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 features of joint Hindu family?

Characteristics of a Joint Hindu Family Business:

  • 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:
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