Business Studies, asked by swargr4azimsweetika, 1 year ago

Joint Hindu family An affectionate business

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Answered by rahulragini
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Joint families have been a part of the Indian family system from time immemorial. People, irrespective of their faiths, have had this type of family structure. With education, varying personal interests coming to the fore and due to societal changes families are gradually becoming nuclear. But, in spite of becoming nuclear, families are known to run their businesses jointly.

Among Hindus, particularly in the Baniya community, HUF or Hindu Undivided Family was a management structure of many a business across the country. Although this is changing, yet even today one finds many businesses run jointly by family members, mostly trading businesses.

The advantage of running family businesses jointly is that responsibility and authority can be allocated judiciously among the members, because trust is the overriding reason for doing so. The patriarch is respected and, so, tight checks and balances can be put in place by him. The talents of multiple members can be utilised for diverse functions. Confidentiality and secrecy can be maintained as none of the key functionaries are expected to move to a competing business, unlike a professional could do.   
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