Question

A company consists of ________ members, whereas a Hindu Undivided Family business consists of _________ members since it consists of members of the joint family itself.

• A. Homogeneous, homogeneous
• B. Heterogeneous, homogeneous
• C. Homogeneous, Heterogeneous
• D. None of the above

Answer 1

The correct option is B Heterogeneous, homogeneous

HUF is a unique form of business existing only in India and is governed by the provisions of the Hindu Law. It comes into existence by operation of Hindu Law and not out of contract. The firm is owned by the members of undivided Hindu family, called co-parceners.

On the other hand “company” means “a company incorporated under the Companies Act 2013 or any previous company law.”

A Hindu Undivided Family Business consists of homogenous (unvarying) members since it consists of members of the joint family itself whereas . A company consists of heterogeneous (varied or diverse) members.