methodof joint hindu family business
Answers
A Joint Hindu Family Business refers to an affectionate business organisation solely owned and managed by no other entities but the family. The method is as such - the family if involved in this type of business firms. The Head of the Family is known as the Karta or the Caretaker of the family who takes lead charge in day to day operations and swift management of the business. Now, a Karta cannot always manage the entire business on this own - hence other family members then come into picture and play the role of being members of the business organization to aide the family's needs as well as assist the Karta. These members are regarded to as Co-Parceners. Now, one quick thing to remember is that Karta being the head of the family, has unlimited liability to the outsiders - so if the business faces heavy loss, he will have to make good the amount needed to be handed out to outsiders through this own pockets without intervening with co-parcenary members or telling them to put their share of money in this. Similarly, co-parceners have no role in the management aspect of the business, they just help in the day to day operations of the business as such they have a limited liability and as such do not have to mint all the money they have in their pockets in order to run the business or continue running it.