Question

Distinguish between Proprietorship and Joint Hindu Family Firm.

Answer 1

Sr. No.	Basis of Difference	Proprietorship	Joint Hindu Family
1.	Meaning	It is a form of commercial organization that is owned and managed by a single person.	It is a form of commercial organization. The ancestral (family) business is conducted by the family members of the Joint Hindu Family.
2.	Membership	There cannot be more than one owner.	There is no maximum limit on membership.
3.	Ownership	The business assets and properties are owned by the proprietors.	All the family members are joint owners of business properties.
4.	Liability	The liability of a sole trader is unlimited.	Karta’s liability is unlimited. Co-parcener’s liability is limited.
5.	Financial Resources	The financial resources are available.	The funds are more than those of a proprietor.
6.	Stability	It lacks stability since the existence of a sole trading concern depends upon the survival of the sole trader.	It is comparatively more stable since, after the death of Karta, the next senior family member takes over Karta’s position and runs the business.
7.	Profit and Loss	All the profit of the concerned belongs to the sole trader, and all losses are to be borne by him.	All the co-parceners share the profits and losses.