Question

Write short answers for the following:
State the characteristics or features of Joint Hindu Family Business.

Answer 1

Joint Hindu Family Business is a form of business organization wherein the business is owned by the members of a Hindu Undivided Family The business is controlled by the head of the family who is the eldest member and is called Karta.

The features of Joint Hindu Family Business are :

1. Formation: For a joint Hindu family business, there should be at least two members in the family and ancestral property to be inherited by them.

2. Liability: The liability of all members except the Karta is limited to their share of the co-parcenery property of the business.

3. Control: The control of the family business lies with the Karta. He takes all the decisions and is authorized to manage the business. His decisions are binding on the other members.

4. Continuity: The business continues even after the death of the Karta as the next eldest member takes up the position of Karta, leaving the business stable