Question

State any two advantage of join hindu family business.

Answer 1

A Joint Hindu Family Business is a particular type of business organisation which is mainly governed by the ancient Hindu law or custom of ancestral inheritance of family wealth within a Hindu family.Hence,it is a form of a Hindu family business.

Explanation:

Advantages of Joint Hindu Family Business:-

• As a family business organisation or entity,joint Hindu family business assumes centralization of managerial,administrative and operational decisions and power in the hands of the family head,who is the main in charge of the family business.It leads to relatively less confusion,time and complications in the decision making process and managerial functioning of the business as a whole.
• The financial liability of a joint Hindu family business is commensurately distributed among all the family members who are directly involved in the business as partners based on their respective claims on ancestral or family inheritance.Hence,any financial loss/risk in the business or future liabilities are collectively handled by the business partners or family members,particularly in this instance.