Question

Distinguish between the following.
Joint Hindu Family firm and Partnership

Answer 1

 

Basis of Difference	Joint Hindu Family Firm	Partnership Firm
Regulating Act	Governed by the Hindu laws & the Hindu Succession Act 1956.	Governed by the Indian Partnership Act 1932.
Number of members	Minimum: 2 Maximum: No limit	Minimum: 2 Maximum: 10 for banking business and 20 for other businesses
Minor	Minors can be members	Minors cannot be members
Liability	Liability of all members is limited, but the liability of the Karta is unlimited.	Liability of the partners is unlimited
Management and control	Management and control lie in the hands of the Karta.	Management and control are shared by the partners
Decision making	All decisions are taken by the Karta.	Any decision requires the consent of all partners.