define joint hindu family business. Discuss its four limitations.
Answers
Meaning of Joint Hindu Family Business
It refers to a form of business organization which is owned and carried on jointly by the members of the Hindu Undivided Family (HUF). It is also known as Hindu Undivided Family Business.
Answer:
1. Business owned by the members of a joint hindu family. it is the oldest system of business that can be seen only in India.
2. It is governed by the provision of hindu law. the basis of membership In the business is birth in particular family and three successive generations can be members in the business.
3. The business is controlled by the head of the family who is the eldest member and is called 'Karna.
4. All members (male and female) have equal ownership right over the property of an ancestor and they are known as 'Co-parceners'.
Explanation:
LIMITATIONS:
1.limited resources
2.unlimited liability of karta
3.dominance of karta
4.limited managerial skills.