Question

Distinguish between the following:
Joint Hindu Family firm and joint stock company

Answer 1

Joint Hindu Family Firm	Joint Stock Company
Meaning	Meaning
When joint Hindu family conducts business, inherited by it as per Hindu law, it is called a Joint Hindu family firm.	It is voluntary association of individuals for profit having capital divided into transferable shares, the ownership which is the condition of membership.
Membership	Membership
There is no limit on the number of members since the membership keeps on changing depending upon the birth and death in the family.	The minimum of number of members are 2 in private limited company and a maximum of 50. In a public limited company, minimum number of members are 7 and there is no maximum limit
Liability	Liability
Karta's liability is unlimited. Coparceners liability is limited.	The liability of every shareholder is limited to the extent of the unpaid amount on shares held by him.
Management	Management
Karta is the key manager of business who may be assisted by co-parceners to a limited extent.	Board of Directors constitute the management of company. Directors run the business very efficiently since they possess the required expertise.
Act / Law	Act / Law
It is governed by the Hindu law.	Joint stock company is controlled under the Indian companies Act, 1956