What is joint Hindu family form of business organisation?

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 are the examples 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.

What are the characteristics of joint Hindu family business?

The main characteristics of Joint Hindu Family Business are given below:

  • i. Governed by Hindu Law. The business of the Joint Hindu Family is controlled and managed under the Hindu law.
  • ii. Management.
  • iii. Membership by Birth.
  • iv. Liability.
  • v. Permanent Existence.
  • vi. Implied Authority of Karta.
  • vii. Minor also a co-parcener.

Who regulates the joint Hindu family business?

Karta
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.

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:

What are the limitations 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 the disadvantage of joint Hindu family business?

What are the disadvantages of joint Hindu family?

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 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 advantages of joint Hindu family firm?

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.

Is the Joint Hindu family business in India?

The Joint Hindu Family Business is an affectionate business and a distinct form of organization peculiar to India. The operation of law creates a joint Hindu Family Business. It does not have any separate and distinct legal entity from that of its members.

Is the Joint Hindu Family ( HUF ) legal in India?

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.

Who is a member of a joint Hindu family?

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.

Which is a unique type of organisation in India?

Let us learn about this form of organisation and its unique features. The Joint Hindu Family Business or the Hindu Undivided Family (HUF) is a unique type of business entity. It is governed and dictated by the Hindu Law, which is one of the several religious laws prevalent in India.