Joint Hindu family can be regarded as the benefit to the business because by agreeing the contract the business will be run on the basis of the Hindu law. This establishment is done so that the businesses will not be broken down within the organization due to the petty reasons.
What is advantage of joint Hindu family business?
Increased loyalty and cooperation : In a Joint Hindu Family Business, chances of great coordination among the members are more because they all belong to the same family. Hence, chances of loyalty towards business are more as compared to other forms of organisations.
What are the advantages of joint family business?
Effective control and Prompt Decision Making:
The. This avoids conflicts among members as no member can interfere with his right of karta to take a decision. The prompt decisions help the business to grab opportunities. Secrecy: In Joint Hindu Family Business, all the decisions are taken by the ‘Karta’ himself.
What are advantages and disadvantages of joint Hindu family business?
The whole power of Joint Hindu family business lies in the hands of Karta. Full power is centralized in the hands of Karta. No other member can interfere in Karta decisions. Karta may misuse his power & take decisions according to his interest.
What is meant by joint Hindu family business What are its essential features?
Characteristics of Joint Hindu Family Business:
There should be at least two male members in the family to form a HUF. Ancestral property should have been inherited by members of HUF. All of the members enjoy this property and have an equal share in that property.
What are the disadvantages of joint Hindu family business?
Disadvantages of Joint Hindu Family Business:
- Limited Membership: The membership of the business is limited to the members of family only. …
- Limited Sources of Capital: The capital is limited only upto the resources of one family. …
- Limited Managerial Skill: …
- Unlimited Liability: …
- Misuse of Power:
What is the main cause of decline in joint Hindu family business?
Conflict or family quarrel has caused the breakdown of joint family system. Conflicts regarding family property, its income and expenditure, unequal distribution of work at home and personal clashes between women lead to the break-up of joint families.
What are advantages and disadvantages of joint family?
In a joint family, one learns to accommodate others and share what they have. In a joint family, people do things together. They share the expenses, groceries, household appliances, and furnishings with the rest of the family. Kids are encouraged to share whatever they get with their siblings as well as cousins.
What are the two conditions for existence of joint Hindu family business?
For formation of the business, there should be at least two members are present at the time of formation and a hereditary property should be formed for Hindu Joint Family Business. Their membership is not created by an agreement in among individuals.
What is the example of joint Hindu family business?
There are several joint Hindu Family Business examples in India, which include Reliance Industries Limited and Mahindra and Mahindra Limited. All business dealings within a joint family business in India are regulated by the Hindu Law, and not the Partnership Act, which controls other business models.
How many types of joint are there in Hindu family business?
Here the liability of Karta is unlimited & rest all have liability as per their share in the business. Membership in business is acquired either by birth in family or marriage to a male member of the family. There are basically 2 types of joint Hindu family business: Mitakshara & Dayabhagha.
Which of the following is not an advantage 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’.