According to Hindu Succession Act Joint Hindu Family Business can only be in India…not in any other country. … joint hindu family only exist in India…..
Which is are the limitations of joint Hindu family firms?
- Limited resources. The Joint Hindu Family Business faces the problem of limited capital as it mainly depends on the ancestral property. …
- Unlimited liability of Karta. …
- Dominance of Karta. …
- Limited managerial skills.
Is registration of joint Hindu family business compulsory?
Joint Hindu Family is a form of business organization wherein the members of a family can only own and manage the business. It is governed by Hindu Law. … It is not at all compulsory to register this organization because it is the result of Hindu Law. There are two types of members, i.e, Karta and coparceners.
Who controls the joint Hindu family business?
The business of the Joint Hindu Family is controlled and managed by one person who is called ‘Karta’ or ‘Manager’. The Karta or manager works in consultation with other members of the family but ultimately he has a final say.
Which of the following is not the feature of joint Hindu family business?
The youngest member of the family is Karta is not the characteristic of Joint Hindu Family Business. Explanation: The ‘Joint Hindu family business’ is very popular in India. It is ruled by the ‘provisions of the ‘Hindu Law’.
How is profit distributed in joint Hindu family business?
In Joint Hindu Family Business, distribution of profit is equal in all members. Capital is contributed by large financial resources. Ancestral property can be transferred to create a capital in joint Hindu Family Business.
Is Reliance a joint Hindu family business?
There are several joint Hindu Family Business examples in India, which include Reliance Industries Limited and Mahindra and Mahindra Limited. … The business is usually overseen by the eldest member of the family or the head, called the Karta.
What is the liability of Karta in joint Hindu family business?
(b) The joint Hindu family business is controlled by the head of the family who is the eldest member and is called Karta. The karta has unlimited liability while the liability of all other members is limited to their share of co-parcenery property of the business.
In which country only do you find Hindu undivided family business?
The Joint Hindu Family Business or the Hindu Undivided Family (HUF) is a unique form of business organisation found only in India. Nowhere else in the world is this a legal form of business entity.
What are the advantages of joint Hindu family business?
Merits of Joint Hindu Family Firm:
- Stability: The existence of the Joint Hindu Family firm does not come to an end by the death, insanity, or bankruptcy of any coparcener.
- Management: The organisation, management, and control of the business is vested in the karta of the family. …
- Liability: …
- Membership: …
- Credit worthiness:
Under what law the Joint Hindu Family business is regulated?
The business of Joint Hindu Family is controlled under the Hindu Law instead of Partnership Act. The membership in this form of business organisation can be acquired only by birth or by marriage to a male person who is already a member of Joint Hindu Family.
What is the main source of capital under joint family business?
As ancestral property is the main source of funds in case of Joint Hindu Family business, there is a problem of limited capital which further limits the scope for expansion of business.
Under what law the joint family system is regulated?
1. Governed by Hindu Law: The business of the Joint Hindu Family is controlled and managed under the Hindu law.