Which of the following statements describes the best Joint Hindu / Hindu Undivided Family (HUF) Business?
(a) It is a form of business particular to and recognized as such in India
(b) Every family business is in fact a HUF Business
(c) In HUF businesses, there is a family involvement in business
(d) Either (a) or (c)
Answers
Answered by
1
Answer:
[d] Either (a) or (c)
Explanation:
[d] Either (a) or (c)
[d] Either (a) or (c)
Answered by
0
Explanation:
Correct option is
C
Both (a) and [b)
In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. Following can be treated as advantage of HUF form of business:
a) The liability of the co-parceners is limited, except for that of karta which makes the karta to manage the business in the most efficient manner.
b) A HUF business is not affected by the insolvency or death of any member including that of karta.
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