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Question
Distinguish between a Joint Hindu family business and partnership.
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Solution
|
Basis of difference |
Joint Hindu Family Business |
Partnership |
|
Governance |
Governed by the Hindu law. |
Governed by Partnership Act, 1932. |
|
Liability |
The head has unlimited liability, while the liabilities of other members are limited to the extent of their share in the business. |
All the partners have unlimited liability. |
|
Decision making and control |
The karta is responsible for the management and control of the business. |
All the partners jointly manage and control the firm. |
|
Number of members |
Minimum: 2 Maximum: No limit |
Minimum: 2 Maximum: 10 for the banking business and 20 for other businesses |
|
Minor |
Minors can be members. |
Minors cannot be members. |
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RELATED QUESTIONS
The Karta in a Joint Hindu family business has _______ liability
The form of organisation which comes into existence by law of inheritance.
Select the proper option from the options given below and rewrite the completed sentence.
The Karta in Joint Hindu family Business has ________ Liability.
Write a word or a phrase or a term which can substitute the following.
The senior most family member of joint Hindu family firm.
Write a word or a phrase or a term which can substitute the following.
The members of the Joint Hindu family firm.
Compare the status of a minor in a Joint Hindu family business with that in a partnership firm.
State True or False:
The liability of KARTA is unlimited.
State True or False:
The maximum number of members is unlimited in Joint Hindu Family Firm.
State True or False:
Joint Stock company can raise huge amount of capital.
Answer in one sentence.
What is Joint Hindu Family business?
Explain the following term/concept:
Karta.
Study the following case situation and express your opinion:
Mr. Raghunath is running a business from the last 30 years. This business is ancestoral business of Mr. Raghunath. Kiran and Naman, two sons of Mr. Raghunath are helping him along with their wives.
- Find out the type of business.
- Who is Raghunath?
- What Kiran and Naman are called?
Justify the following statement.
Karta is the sole manager of ‘Joint Hindu Family Business’.
Give one word /phrase/term.
The members of the joint Hindu Family firm.
Give one word/phrase/term.
The members of the Joint Hindu Family firm.
The members of the Joint Hindu Family firm.
Give one word/phrase/term.
The members of the Joint Hindu Family firm.
Give one word/phrase/term.
The members of the Joint Hindu Family firm.
Give one word/phrase/term.
The members of the Joint Hindu Family firm.
What is the main disadvantage of JHFB shown in the notes?
