Question

Which of the following can be treated as advantage of HUF from of business?

• A. Every co-parcener is assured a share in the profits irrespective of his contribution to the profits irrespective of his contribution to the successful running of the business.
• B. The karta enjoys full freedom in conducting the family business.
• C. A HUF business provides opportunity for the young members of the family to get the benefit of knowledge and experience of the elder members and also helps in inculcating virtues like discipline, self-sacrifice, tolerance etc.
• D. All of above

Answer 1

The correct option is D All of above

In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. Following can be treated as advantage of HUF form of business:

a) Every co-parcener is assured a share in the profits irrespective of his contribution to the profits irrespective of his contribution to the successful running of the business.

b) The karta enjoys full freedom in conducting the family business.

c) A HUF business provides opportunity for the young members of the family to get the benefit of knowledge and experience of the elder members and also helps in inculcating virtues like discipline, self-sacrifice, tolerance etc.