merites for joint Hindu undivided 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.
5. Credit worthiness:
Compared to the sole proprietor, the credit worthiness of the family business is definitely more.
Answer:
refer to the attachment
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