Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. Jun 02, 2016 property acquired in the course of some business carried on by the persons constituting a joint hindu family, takes the characteristic of joint family property. The disadvantages of living in a joint family are mentioned below. Hindu family is joint family when it is joint in food, worship and estate. What are the aims and objectives of a joint hindu family. Advantages and disadvantages of joint family essay in hindi. A joint family also undivided family, joint household, extended family system is a large undivided family where more than one generation live together in a common house.
Forms of business organisation download ncert text books. Article on hindu undivided family huf topic of business. Merits and demerits of joint hindu family business class. Before you get the idea that family businesses benefit only the family members involved, think again. Therefore, it cannot undertake big and risky business. Property belongs to the family as a whole and all family income is pooled together. A joint hindu family business is not dissolved on the death, lunacy or insolvency of any of the copartners. Thanks for the a2a as posted in the picture, the joint hindu family business is a family business involves only the members of the family. Benefits and drawbacks of huf in tax compilation while there are several benefits and drawbacks of hufs in tax compilation, you might be able to save on your income tax by forming a hindu undivided family since such households generally have a joint income instead of individual incomes. The life of joint hindu family business is uncertain. Joint hindu family business is a specific form of business organization found only in india. Well, any person born into the family boy or girl up to the next coming three generations is a part of. Understanding the concept of hindu undivided family articles. The joint hindu family business is on the decline because of the diminishing number of joint hindu families in the country.
Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family. Merits and demerits of joint hindu family business class 11. The next generation ceo of a successful family business expressed dismay and surprise about part of his job experience. Joint hindu family business has generally limited financial and managerial resource. In joint hindu family business, only manager has the implied authority. Head of the family known as karta manages the business. Let us learn about this form of organisation and its unique features. Characteristics of a joint hindu family business 3. Class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration.
Smart entrepreneurs and business owners know that joint ventures are the fastest and most effective way to radically increase sales and profits with virtually no money and no risk, as long as its done correctly. So it is running forever even when the karta is dead. A joint family may encompass countless generations. Joint hindu family business and partnership 52 one person company v. A joint hindu family is normally joint in worshipkitchen business.
Any single member has no right to get the business dissolved. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. Nowhere else in the world is this a legal form of business entity. Joint hindu family business is more stable than other business. It refers to a form of organization wherein the business is owned and carried on by the members of the hindu undivided family huf. All the shareholders own a certain amount of stock in the company, which is represented by their shares. Jul 18, 2018 joint hindu family business 11th class chapter 2nd part3. Features merits introduction limitations examples 3. It is governed and dictated by the hindu law, which is one of the several religious laws prevalent in india so who all are members of such an organization. It is true that if grandparents are in the family that they always try to give better discipline to their loving child. Advantages and disadvantages of joint hindu family business. Joint hindu family business is a distinct type of organisation which is unique to india.
Limited liability partnership 54 company and cooperative society 55. Jan 20, 2018 joint hindu family business class 11 1. The position of the karta of the hindu common family has its roots in the patriarch of the old family units. I never believed giving away money would be so hard.
Aug 26, 2014 advantages and disadvantages of joint family essay in hindi click to continue how to write an essay about my hometown culture sample buy the north of only about in flood from our lives everyday and allows me tell you taking the best. It is governed by the hindu law, which is one of the several religious laws. Various forms of business organisations from which one can choose the right one include. Llp 53 partnership and company 53 limited company v.
There is always a lack of motivation among the members to work hard. It does not arise out of the operation of law as in the case of joint hindu family. Due to all members of the family living together, they should build trust among. Introduction it is a presumption that every hindu family is joint family, they cannot escape from the joint family.
The head of the family is the head of the business also. Joint hindu family business is the oldest and specific form of business organization found only in india. The importance of family business philanthropy the family. All business affairs are dealt with by the senior most male member of the hindu family. The joint hindu family business is controlled under the hindu law instead of the.
Following are the advantages of a joint family disciplines. Even within india its existence is restricted to only certain parts of the country. Forms of business organisation business environment 28 3. It is one of the oldest forms of business organization in the country. A business, which continues from one generation to another generation is known as joint hindu family business or firm. Family business may have some owners who arent members of the family. What is the advantage and disadvantage of joint family in. Joint hindu family business is a different type of organization, which is found only in india. Procedure to start joint hindu family business advantages. It does not have any separate and distinct legal entity from that of its members.
The term hindu undivided family huf is not defined under income tax act. However, with urbanization and economic development, india has witnessed a break up of traditional joint family into more nuclearlike families, and the traditional joint family in india accounted for a small number of indian households. A partnership usually involves a continuing, longterm business relationship, whereas a joint venture is based on a single business project. Liability the liability of a partner is not only joint liability or limited to his share in the partnership business, the liability is several liability also. Oct 21, 20 the meaning, advantages and disadvantages of joint family has been discussed in this article. Partnerships and joint ventures can be similar but in fact can have significantly different implications for those involved. The advantages and disadvantages of a family business. What are the advantages and disadvantages of joint ventures. The karta of the joint hindu family has all the powers to act on the behalf of the family and he is the only person who can represent the family.
It is a specific form of business organization found only in india. In a joint family system basically all the members of the family live together under one roof and are related to each other. With a very small amount of capital one can start the business. Business also has limited financial source as it is dependent on its family members. 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. Role of karta in hindu undivided family huf by sumit mishra download pdf the author, sumit mishra is a 2nd year student of allahabad university. A sole proprietorship form of business is very easy to form. A joint hindu family is headed by a karta, who is normally the eldest living male member of the family. Dec 29, 2017 class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. A hindu undivided family or huf is a legal term related to the hindu marriage act.
Family business is a corporation or conglomerate, wherein each member of the family has a significant ownership or interest and commitment. Joint hindu family business an affectionate business. Joint hindu family business class 11 linkedin slideshare. The chief advantages of joint hindu family business are given below. Living in a joint family, you may have lack of leadership and decision making qualities as head of the family will decide and does all the important decisions. They benefit both the local and global economies, and in a big way. Aug 12, 2014 though there are a lot of advantages of living together in a joint family, it has some disadvantages also. The inheritors of the joint hindu family business are called co. Without sharing the family business to external parties and using the family business profit for the well being of particular family. This is special form of business organization, which now exists only in india. Essay on joint family for students in easy words read here.
It is very easy to start the joint hindu family business. In joint hindu family business, there is no restriction on the maximum number of members. The joint hindu family business is a distinct form of organisation peculiar to india. Professor haney defines it as a voluntary association of persons for profit, having the capital. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india. However, how can it also be true that fewer than 10% survive to the third generation and less than 10% of owners are financially. Distinguish between a joint hindu family business and. Parties enter joint ventures to gain individual benefits, usually a share of the. In this form of business ownership, all members of a hindu undivided family do business jointly under the control of the head of the family who is known as the karta. Partnership is formed on the basis of an agreement between two or more persons to carry on business. As per hindu law, in case of properties not acquired with the aid of joint family property, it is presumed that property acquired by coparceners by working together is joint family.
I feel hassled by the many requests for contributions from business associates and from employees. Only the members of the joint hindu family can become a member of business. Jan 21, 2020 the joint hindu family business can be dissolved only at the will of all the members of the family. The simplest way to describe a joint stock company is that it is a business organisation that is owned jointly by all its shareholders. The operation of law creates a joint hindu family business. Membership of joint hindu family business is not open to the public.