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Business Studies

Fixed Capital and Working Capital

Which of the ...

Question

Which of the following is an advantage of HUF?

A

Favourable Credit Standing

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B

Greater Management Ability

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C

Profit Incentive

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D

None of the above

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Solution

The correct option is D None of the above
A Hindu family can come together and form a HUF. The following are the advantage of HUF:
1.Members of Hindu Undivided Family can easily avail loans.
2. Different taxable units of HUF can be created.
Options A, B, and C are not advantages of the HUF.
Thus the correct option is D.

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