It is not formed by any agreement like partnership firm. Whenever, there is Hindu Undivided Family, there is the scope for Joint Hindu Family Business. It is not at all compulsory to register this organization because it is the result of Hindu Law. There are two types of members, i.e, Karta and coparceners.
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.
How is Joint Hindu Family business is governed?
The business of Joint Hindu Family is controlled under the Hindu Law instead of Partnership Act. 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.
What are the limitations of Joint Hindu Family business?
Mention the limitations of Joint Hindu Family Business
- Limited resources : The main source of capital under this kind of business is the ancestral property. …
- Unlimited liability of Karta : The liability of the Karta is unlimited. …
- Dominance of Karta : The entire control and management of the business lies with the Karta.
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 types of Joint Hindu Family?
There are basically 2 types of joint Hindu family business: Mitakshara & Dayabhagha. In Mitakshara only male members can become a member of the business. But in Dayabhagha both male & female persons of the family can become a member of the business.
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.
Can a minor become a member of Joint Hindu Family business?
A minor becomes a member of Joint Hindu Family Business by virtue of his birth. … Hence, minors can also be members of the business. On the other hand, in a partnership firm, the minor cannot be a partner of a business. In the partnership firm, the age of the partners should be above 18 years.
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 are the disadvantages of joint stock company?
- Difficulty of Formation: It is not easy to form a Joint Stock Company. …
- Oligarchic Management: Oligarchy means ‘rule by a few’. …
- Delay in Decision-Making: The functioning of a company is bound by certain rules and procedures. …
- Excessive Regulation:
Which of the following is not an advantage of joint Hindu family business?
The youngest member of the family is Karta is not the characteristic of Joint Hindu Family Business. Explanation: The ‘Joint Hindu family business‘ is very popular in India. It is ruled by the ‘provisions of the ‘Hindu Law’.
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.
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 many members are there in a joint family?
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.