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.

What is joint hindu family form of business organisation?

The Joint Hindu Family (JHF) business is a form of business organisation run by Hindu Undivided Family (HUF) , where the family members of three successive generations own the business jointly. … All of them have equal ownership right over the properties of the 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.

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Who is nominal in joint hindu family business?

Before we understand about the liability of a joint hindu family business lets understand who is the karta. The karta is the eldest member of the family and hence is the controller of the business. The liability is with all members except the karta is limited to their share of co-parcenery property of the business.

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.

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 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.

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.

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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 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.

Can husband and wife form HUF?

To create HUF, at least two coparceners are required either son or daughter. Therefore only husband and wife cannot create an HUF, unless the property has been received by a coparcener on partition or otherwise. However, there is no impediment to starting a new HUF by gift from family members.

Who comes under Hindu undivided family?

Hindu Undivided Family (HUF) consists of all persons directly descended from a common ancestor, and also the wives and daughters of the male descendants. For instance, you and your spouse along with your two children can create an HUF and get certain relaxation in computation of taxes.

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