Question

How Joint Hindu Family business overcome the shortcomings of the sole proprietorship?

Answer 1

The Joint Hindu Family business overcomes the shortcomings of sole proprietorship in several ways. It has access to ancestral property, increasing capital beyond personal savings. Management is centralized in the karta, allowing quick decisions without consulting others. Liability is limited to the extent of the share for most members, unlike the unlimited liability of sole proprietors. The business enjoys continuity even after the death of members, ensuring stability. Profit is shared among members, reducing individual burden. These features provide greater capital, continuity, limited liability, and shared responsibility compared to sole proprietorship.