In which form of business organization, every member acts both as an agent and as a principal. Features merits introduction limitations examples 3. Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint. A sole proprietorship form of business is very easy to form. A social study of the benefits of the joint family system. Ive done business with my wife, daughter, soninlaw, and various mixtures of those. Of course the classic advice on this is not to mix business with family. It does not have any separate and distinct legal entity from that of its members. Why is joint hindu family business established in india.
A joint family or undivided family is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many generations living in the same household, all bound by the common relationship hindu undivided family huf is treated as a person under section 231 of the incometax act, 1961 herein after referred to as the act. One of such rules is individual and separate pan for huf, using which the member can file their returns. May 20, 2011 the karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer. However, the disadvantages also tag along in the process. Write in your own words and avoid copying phrases and sentences from the article unless they are direct quotation. What is the advantage and disadvantage of joint family in. Forming a joint hindu family business is extremely easy, as no legal formalities are required to be fulfilled. Joint hindu family business class 11 linkedin slideshare. Advantages and disadvantages of family entrepreneurship. Characteristics of a joint hindu family business 3.
Thanks for the a2a as posted in the picture, the joint hindu family business is a family business involves only the members of the family. Joint hindu family business and cooperative societies. The joint hindu family business is a distinct form of organisation peculiar to india. Advantages and disadvantages of joint stock company. This really meant that, the parents with all their children and grandchildren stayed together under one single roof. Jan 20, 2018 joint hindu family business class 11 1. What are the aims and objectives of a joint hindu family. Having a joint account requires the presence of trust between or among the account holders. A joint family also undivided family, joint household, extended family system is a large undivided family where more than one generation live together in a common house.
Pdf files offer unique advantages over other file formats, transforming business workflows into seamless, secure processes where progress can be closely tracked. Jan 27, 2017 a joint hindu family business is not created by any agreement or contract, because it exists only by operation of hindu law. The karta is the eldest male member of a joint hindu. In a joint family system basically all the members of the family live together under one roof and are related to each other. The property of a joint hindu family may consist of ancestral property, joint acquisitions self acquisitions thrown into the common stock however, even in the absence of any property, the joint hindu family may still be in existence as a joint hindu family damodar krishnaji nirgude v. Partnership is formed on the basis of an agreement between two or more persons to carry on business. After reading this article you will learn about the advantages and disadvantages of joint stock company. Before the industrial revolution, there was family business. Joint hindu family business an affectionate business. Advantages of joint hindu family business 31 disadvantages of joint hindu family business 32 suitability of joint hindu family business 32 partnership 32 meaning 32 characteristics 32. It is governed and dictated by the hindu law, which is one of the several religious laws prevalent in india so who all are members of such an organization. The traditional assumption behind such a deduction is that every hindu family is normally a joint family. Joint hindu family business is a different type of organization, which is found only in india.
Joint hindu family business is a distinct type of organisation which is unique to india. A joint hindu family is normally joint in worshipkitchenbusiness. Jun 02, 2016 property acquired in the course of some business carried on by the persons constituting a joint hindu family, takes the characteristic of joint family property. Benefits and disadvantages of joint hypermobility among musicians article pdf available in new england journal of medicine 32915. This, obviously, has a farreaching effect on the success of the company. I read somewhere that 62 percent of the gross national product of the western world is produced by family businesses. Though there are a lot of advantages of living together in a joint family, it has some disadvantages also. The importance of family business as an academic discipline. The meaning, advantages and disadvantages of joint family has been discussed in this article. Therefore, it cannot undertake big and risky business. Property belongs to the family as a whole and all family income is pooled together.
Simply, a hindu joint family would at best be described as, the lineal descendants and their dependants where, the former trace their origin to one common ancestor. The operation of law creates a joint hindu family business. Meaning features advantages and disadvantages of joint hindu family business. Dec 29, 2017 class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration.
The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. The pros and cons of a family business often show that family loyalty happens above everything else, but that can be a good thing when others are included in the business process. It allows only the male members to be coparceners in the business. It is very difficult to locate the documents if the date is not known. The joint hindu family business or the hindu undivided family huf is a unique form of business. Oct 21, 20 the meaning, advantages and disadvantages of joint family has been discussed in this article. Let us look at some of the disadvantages of the joint. Do you need an answer to a question different from the above. The advantages and disadvantages of a family business. Disadvantages of joint hindu family business 1 limited. The joint hindu family business is controlled under the hindu law instead of the. Some family businesses are reluctant to let outsiders into the top tier, and the result is that people are given jobs for which they lack the skills, education, or experience. It refers to a form of organization wherein the business is owned and carried on by the members of the hindu undivided family huf.
What are the advantages and disadvantages of joint ventures. If the turn over of the business of a huf member exceeds over rs. Property acquired in the course of some business carried on by the persons constituting a joint hindu family, takes the characteristic of joint family property. Forms of business organisation business environment 28 3. What are the features of a joint hindu family business.
The karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer. Name the type of partner whose association with the firm is unknown to general public. Joint bank accounts have their advantages and disadvantages. Disadvantages of chronological classification of files. Partnerships and joint ventures can be similar but in fact can have significantly different implications for those involved. Attach files 187 wolf road, albany new york, 12205. Cooperative societies meaning definition feature and types advantages and disadvantages of cooperative societies. It is one of the oldest forms of business organization in the country. Aug 26, 2014 advantages and disadvantages of joint family essay in hindi click to continue how to write an essay about my hometown culture sample buy the north of only about in flood from our lives everyday and allows me tell you taking the best. In this form of business ownership, all members of a hindu undivided family do business jointly under the control of the head of the family who is known as the karta. Historically, for generations india had a prevailing tradition of the joint hindu family or undivided family. Chronological filing is not useful for large scale business units.
The disadvantages of living in a joint family are mentioned below. A joint family may encompass countless generations. With a very small amount of capital one can start the business. Before the multinational corporation, there was family business. We also identified multiple gaps in contemporary family business research.
Sep 01, 20 joint hindu family business is a distinct type of organisation which is unique to india. Essay on advantages and disadvantages of joint family 8541 advantages you can stay connected with all your family members if you are in any trouble you can easily get help. Well, any person born into the family boy or girl up to the next coming three generations is a part of. Consider these key points to determine if starting or joining a family business is the right decision for you. Hindu undivided family huf act advantages, disadvantages. The following is a list of the pros and cons of having joint accounts. The owner of the business tends to promote their family members despite the fact that they are incompetent for the position.
It is a specific form of business organization found only in india. Pdf benefits and disadvantages of joint hypermobility. A joint hindu family is normally joint in worshipkitchen business. A hindu undivided family huf act how to save income tax by forming. There are also several disadvantages in terms of running a family business. In addition, a family member may also take the chance to get an advantages even if it doesnt supported by the policies of the companies. In the revived model, the families coming together may or may not belong to the same parent family. Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. Essay on advantages and disadvantages of joint family. There is always a lack of motivation among the members to work hard. The outstanding advantage is that it allows vast mobilization of capital which otherwise is. As per hindu law, in case of properties not acquired with the aid of joint family property, it is presumed that property acquired by coparceners by working together is joint family.
There are certain rules and regulations to be followed by huf. Aug 12, 2014 though there are a lot of advantages of living together in a joint family, it has some disadvantages also. Identify the most important details that support the main ideas. Rut they deal only with a norm and not the reality. The advantages of forming a company rather than carrying on partnership business are as follows. Advantages and disadvantages of family entrepreneurship and. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. In a joint account, its easier to access the funds when the spouse passes away. This system could prevail for decades for several reasons. Even within india its existence is restricted to only certain parts of the country. A hindu joint family means what in any system of law prevailing in india is known as a hindu joint family or coparcenary. Without sharing the family business to external parties and using the family business profit for the well being of particular family. Advantages and disadvantages of joint family essay in hindi. Some suggestions for family business planning, startups.
A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. It does not arise out of the operation of law as in the case of joint hindu family. Smart entrepreneurs and business owners know that joint ventures are the fastest and most effective way to radically increase sales and profits with virtually no money and no risk, as long as its done correctly. The basic concept of the joint family system is that more than one family come together under one roof and lead a life of mutual cooperation and interdependence. Advantages and disadvantages of joint family essay in. Due to limited financial resources, it is difficult for a business to expand. In particular, its very difficult to retain good talent at lower levels if their. Advantages and disadvantages of living in a joint family a joint family was a phenomena found only in india of the bygone days. Parties enter joint ventures to gain individual benefits, usually a share of the. The manager of the hindu joint family or karta is required to declare all sources of income in form tj. Procedure to start joint hindu family business advantages. Joint hindu family business has generally limited financial and managerial resource. Before the enlightenment of greece and the empire of rome, there was family business,said willium o hara, an academician specializing in family business to demonstrate the longevity and endurance of the family businesses tradition.
Dec 30, 2016 having a joint account requires the presence of trust between or among the account holders. Indias 10 oldest family owned businesses siliconindia. The disadvantages of chronological classification are discussed below. Advantages of joint ventures are speed, access, sharing of resources and the leveraging of underutilized resources, high profits, back end income, low or no risk opportunities and massive leverage disadvantages of joint ventures are the possibility of being ripped off or disappointed by unscrupulous and unprofessional jv partners, and hurting your reputation andor customers and associates. Whose decisions are binding on all the members of the hindu undivided family business. Class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. A joint hindu family is headed by a karta, who is normally the eldest living male member of the family. A joint family system could be created by a family of friends. A partnership usually involves a continuing, longterm business relationship, whereas a joint venture is based on a single business project. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india. Living in a joint family, you may have lack of leadership and decision making qualities as head of the family will decide and does all the important decisions.
The system is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many generations living in the same home, all bound by the common relationship. Advantages and disadvantages of joint hindu family business. Understanding the concept of hindu undivided family articles. Foundation programme business environment and law paper 1 icsi house, 22, institutional area, lodi road, new delhi 110 003. Basic information 1 2 name of hindu joint family as registered with lhdnm. Feb 03, 2016 the property of a joint hindu family may consist of ancestral property, joint acquisitions self acquisitions thrown into the common stock however, even in the absence of any property, the joint hindu family may still be in existence as a joint hindu family damodar krishnaji nirgude v. Advantages and disadvantages of living in a joint family. Joint hindu family firm is created by the operation of law. Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family.