Maharashtra State BoardHSC Commerce 12th Board Exam
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Distinguish Between Proprietorship Joint Hindu Family Firm - Organisation of Commerce and Management

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Distinguish Between

Distinguish between Proprietorship and Joint Hindu Family Firm

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Solution

Sr.

No.

Basis of Difference

 

Proprietorship

 

Joint Hindu Family Firm

 

1.

 

 

Meaning

It is a form of commercial organization which 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 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 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 that of a proprietor.

 

6.

 

Stability

It lacks stability since the existence of 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 passion and run the business.

 

7.

 

Profit& Loss

All the profit of the concerned belong to the sole trader and all losses are to be borne by him.

The profit and losses are shared by all the co-parceners

Concept: Concept of Sole Proprietorship Or Sole Trader
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