Joint Hindu Family (HUF) 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. Karta of the HUF is the Head of the family who is authorized to do business on behalf of the HUF. A HUF is also allowed to purchase assets in its name.
What do you understand by HUF?
Hindu Undivided Family (HUF)
Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. An HUF cannot be created under a contract, it is created automatically in a Hindu Family.
What is HUF and its features?
Features of a HUF
The formation of a HUF does not require any documentation and admission of new members is by birth. Liability: The liability of all the various co-parceners is only up to their share of the property or business. … But the Karta being the head of the HUF has unlimited liability.
What are the two types of joint Hindu family business?
The business ventures of such a family model are strictly controlled by the Hindu Law, which is made up of two components, the Dayabhaga and the Mitakshara. The Dayabhaga system is widely followed in West Bengal and Assam, wherein, both male and female members of the family are allowed to be co-parceners.
What do you understand by joint Hindu family business explain its merits and demerits?
Easy to Start: -Joint Hindu Family business is very easy to form. It comes into existence as per Hindu law. … Secrecy: -Karta of the Joint Hindu family business is the manager of the business himself and all the family members are co-parceners of the business, so the secrecy of the business remains with the family.
What is joint family Wikipedia?
A joint family or undivided family is an extended family arrangement prevalent throughout the Indian subcontinent, particularly in India, consisting of many generations living in the same household, all bound by the common relationship.
What is the role of Karta in joint Hindu family business give any five points?
The most basic duty of a Karta is to provide food, shelter, clothing, etc. To the members of the joint family. His many responsibilities include: Maintenance: all coparceners, from the head of the family to the younger members, have the intrinsic right to maintenance.
What are the advantages of Joint Hindu Family business?
Advantages of Joint Hindu Family Business:
- Easy to Start: It is very easy to start the Joint Hindu Family Business. …
- Efficient Management: …
- Secrecy: …
- Prompt Decision: …
- Economy: …
- Credit Facilities: …
- Natural Love between Members: …
- Freedom regarding Selection of Business:
Who controls the Joint Hindu Family business?
The head of the joint hindu family business is known as Karta. Karta is usually the senior most male member of the joint family and he has the power to control the whole business.
What are the merits 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:
What is the example of Joint Hindu Family business?
Some examples of HUF are TATA Group and Haldiram. Lot of joint Hindu family business are divided into family members during last 30 years or so.. Ambani..after Dhirubhai decided in to two ..but interesting fact is that next generation join it making it again joint family.
What do you mean by Joint Hindu Family business how is it different from that of partnership?
A partnership firm is controlled by two or more persons called ‘Partners’. In Joint Hindu Family ‘Firm, the Joint Hindu Family conducts business according to Hindu Laws. 2. Number of members. A minimum of two members are needed for starting a business.
What do you understand by Joint Hindu Family business explain the Dayabhaga and Mitakshara division in such business organisation?
There are two schools of Hindu Law-one is Dayabhaga which is prevalent in Bengal and Assam and the other is Mitakshara prevalent in the rest of the-country. According to Mitakshara law, there is a son’s right by birth in the property of joint family.
What is joint Hindu family business write any four merits of joint Hindu family business?
Quick Decision: Only the Karta is involved in the decision making process. This helps to make quick decisions in business. If decisions are taken quickly there can be prompt actions. Business Secrecy: Complete business secrecy can be maintained.
What are the merits of joint Hindu family business class 11?
What are the merits of a Joint Hindu Family Business?
- The Karta has full control over the business activities and takes a decision quickly.
- No one can interfere in the decision of Karta as every member is bound to accept his decision.
- Hence, it avoids clashes among the members and results in very speedy decision making.