The Joint Hindu Family (JHF) business is a form of business organisation run by Hindu Undivided Family (HUF) , where the family members of three successive generations own the business jointly. … All of them have equal ownership right over the properties of the business.
What is the joint Hindu family business?
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 is joint Hindu family business in commerce?
Meaning of Joint Hindu Family Business
It refers to a form of business organization which is owned and carried on jointly by the members of the Hindu Undivided Family (HUF). It is also known as Hindu Undivided Family Business.
What is joint Hindu family business explain its advantages?
Advantages of Joint Hindu Family Business are:
Flexibility in operation. Business Secrecy. Continuity of business. Minimum Government regulations. Limited liability of co-parceners.
What is the disadvantage 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 is Joint Hindu Family business in one sentence?
The Joint Hindu Family (JHF) business is a form of business organisation run by Hindu Undivided Family (HUF), where in the family members of three successive generations own the business jointly. The head of the family known as karta manages the business.
What are the advantages of joint family business?
The management of Joint Hindu Family Business is centralised in the hands of Karta of family. In this business, Karta takes all decisions and gets them implemented with the help of other member. No other member interferes in his management.
Who becomes Karta in Joint Hindu Family?
The senior-most male member of the Joint Hindu Family is considered as the Karta of family and he has infinite powers and control over the business. But the main drawback is the unlimited liability associated with the position i.e. his personal assets can be used to payoff the debts, if need arises.
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 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.
Can there be joint Hindu family business outside India?
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…..