What is joint Hindu family business explain its merits and demerits two from each?

What are the merits and demerits of joint Hindu family business?

Solution

  • Easy to Start: -Joint Hindu Family business is very easy to form. …
  • Prompt Decision: -The Karta has complete control over his business. …
  • Good Relations with Employees: -Joint Hindu family has few employees with whom good and personal relations are maintained as in case of a sole trading concern.

What are the merits and demerits of HUF?

Write 4 merits and demerits of HINDU UNDIVIDED FAMILY.

  • Easy formation: -Formation of Joint Hindu family is very easy. …
  • Quick decisions and prompt action: -The Karta is the sole manager of the business and head of the family. …
  • Flexibility in operation: -The management is in the hands of the Karta.

What are the merits of a 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:
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What are the demerits of joint Hindu family business?

Demerits of Joint Hindu Family Business: Limited Resources: The capital is limited only up to the resources of one family. No outside members other than family members can be introduced to the HUF. Thus the joint Hindu family business faces the problem of limited capital as it depends mainly on ancestral property.

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 are the two conditions for existence of joint Hindu family business?

1) Two male members should be there in the business of HUF. Thus, one person cannot start this type of business. 2) Condition related to property inherited by a Hindu Family from his great grandfather.

What is joint Hindu family business explain its three features?

All the affairs of a Joint Hindu Family are controlled and managed by one person who is known as ‘Karta’ or ‘Manager’. The Karta is the senior most male member of the family. The members of the family have full faith and confidence in Karta. Only Karta is entitled to deal with outsiders.

What are the disadvantages of joint stock company?

Disadvantages of Joint Stock Company:

  • Difficulty in Formation: ADVERTISEMENTS: …
  • Reckless Speculation Encouraged: …
  • Fraudulent Management: …
  • Delay in Decision-Making: …
  • Monopolistic Powers: …
  • Excessive Regulation by Law: …
  • Conflict of Interests: …
  • Lack of Secrecy:
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