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

What are the merits and demerits of Hindu family business?


  • 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 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 is joint Hindu family business write any four merits of joint Hindu family business?

Quick Decision: Only the Karta is involved in the decision making process. This helps to make quick decisions in business. If decisions are taken quickly there can be prompt actions. Business Secrecy: Complete business secrecy can be maintained.

What are the merits and demerits of joint stock company?

Joint Stock Company – Advantages and Disadvantages

  • (1) Huge Financial Resources:
  • (2) Efficient Management:
  • (3) Limited Liability:
  • (4) Transferability of Share:
  • (5) Diffusion of Risk:
  • (6) Stability:
  • (7) Public Confidence:
  • (8) Scope for Expansion:

What is a 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 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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Which of the following is not the 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’.

What are the advantages of joint stock company?

The shares of a company are transferable. Also, in the case of a listed public company they can also be sold in the market and be converted to cash. This ease of ownership is an added benefit. Perpetual succession is another advantage of a joint stock company.