Write short notes on the following.
Merits of Joint Hindu family
Merits of Joint Hindu family
Merits of a joint Hindu family business:
i. Easy formation: The formation of a joint Hindu family business requires the existence of ancestral property, with at least two members. It is governed by the Hindu Succession Act 1956 and does not require any agreement.
ii. Continuity: The continuity of a joint Hindu family business remains unaffected by the death of the Karta.
iii. Quick decision making: Complete control by the Karta enables proper administrative functioning and quick decision making.
iv. Greater cooperation: As the business is run by the members of a family, there exists greater cooperation and loyalty.
v. Secrecy: As all the decisions are taken by the Karta, secrecy of information is maintained among the family members.
vi. Limited liability: The liability of all members or co-partners (except the Karta) is limited to the extent of their share in the business.
i. Easy formation: The formation of a joint Hindu family business requires the existence of ancestral property, with at least two members. It is governed by the Hindu Succession Act 1956 and does not require any agreement.
ii. Continuity: The continuity of a joint Hindu family business remains unaffected by the death of the Karta.
iii. Quick decision making: Complete control by the Karta enables proper administrative functioning and quick decision making.
iv. Greater cooperation: As the business is run by the members of a family, there exists greater cooperation and loyalty.
v. Secrecy: As all the decisions are taken by the Karta, secrecy of information is maintained among the family members.
vi. Limited liability: The liability of all members or co-partners (except the Karta) is limited to the extent of their share in the business.
