20.Explain any four merits of joint Hindu Family.
Answers
Answer:
1. Stability:
The existence of the Joint Hindu Family firm does not come to an end by the death, insanity, or bankruptcy of any coparcener.
2. Management:
The organisation, management, and control of the business is vested in the karta of the family. This results in the ‘unity of command’ and non-interference in the conduct of business. This non-interference makes quick decisions, prompt action maintenance of secrecy, etc., possible.
3. Liability:
Except the karta, all other members’ liabilities are limited to the extent of their share in the ancestral property.
4. Membership:
Unlike partnership, there is no such limit to the membership of the Joint Hindu Family Firm. However, it is restricted to the three successive generations in the male line.