Question

Define a Joint Hindu family firm. Explain features of joint Hindu family firm.

Answer 1

A joint family or undivided family is an extended family arrangement prevalent throughout the Indian subcontinent, particularly in India, consisting of many generations living in the same household, all bound by the common relationship.
The main characteristics of Joint Hindu Family Business are given below:
Governed by Hindu Law
Management
Membership by Birth
Liability
Permanent Existence
Implied Authority of Karta
Minor also a Partner
Dissolution

I hope it is helpful for you

Answer 2

Joint Hindu family business is a type of business which has its individuality only in India and it is run by the family members from generation to generation.

Features:

1. This can easily be formed with at least two members of the family and it has to have property from the ancestors.

2. It does not need any agreement to be formed.

3. It can be continued by the family member as long as they want to.

4. The capital for investment is limited in such a system.

5. As it only involves the family members, which would restrict skills as not all possess all the skills necessary for effective management.

6. The family members can access unlimited liability, which is not so good for a firm which may downgrade it.