Question

Write short answers for the following:
What is Joint Hindu family business? State it's main characteristics.

Answer 1

Hindu undivided family business or Joint Hindu family business is the business concerns ( small, medium or large scale) which are run my the members of a joint family. Usually the head of the family is also the head of the concern run by the family. The features of a Joint Hindu family business are:

1. No separate legal entity.

2. Karta- The Head of the Hindu undivided family business is known as karta. He is the eldest member of the family while other members are coparceners.

3. Relationship misunderstandings affects the affairs of the business.

4. No profit sharing- the whole profit is belongs to karta and it is in his opinion if he wants to share that with other family members.