One of such rules is individual and separate pan for huf, using which the member can file their returns. What are the aims and objectives of a joint hindu family. Due to limited financial resources, it is difficult for a business to expand. There are also several disadvantages in terms of running a family 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. Hindu undivided family huf act advantages, disadvantages. 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. Having a joint account requires the presence of trust between or among the account holders. Joint bank accounts have their advantages and disadvantages. 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.
Features merits introduction limitations examples 3. After reading this article you will learn about the advantages and disadvantages of joint stock company. The following is a list of the pros and cons of having joint accounts. The advantages of forming a company rather than carrying on partnership business are as follows. Disadvantages of joint hindu family business 1 limited. We also identified multiple gaps in contemporary family business research. 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. Forming a joint hindu family business is extremely easy, as no legal formalities are required to be fulfilled.
A joint hindu family is normally joint in worshipkitchenbusiness. Though there are a lot of advantages of living together in a joint family, it has some disadvantages also. Partnership is formed on the basis of an agreement between two or more persons to carry on business. What are the features of a joint hindu family business. A joint family may encompass countless generations. Partnerships and joint ventures can be similar but in fact can have significantly different implications for those involved. Joint hindu family firm is created by the operation of law. Before the industrial revolution, there was family business. This system could prevail for decades for several reasons.
In a joint account, its easier to access the funds when the spouse passes away. It is one of the oldest forms of business organization in the country. I read somewhere that 62 percent of the gross national product of the western world is produced by family businesses. Advantages and disadvantages of joint family essay in. Joint hindu family business an affectionate business. Advantages and disadvantages of joint hindu family business. Advantages and disadvantages of living in a joint family a joint family was a phenomena found only in india of the bygone days. The importance of family business as an academic discipline. Well, any person born into the family boy or girl up to the next coming three generations is a part of. However, the disadvantages also tag along in the process. Characteristics of a joint hindu family business 3. 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 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 does not have any separate and distinct legal entity from that of its members. Advantages and disadvantages of living in a joint family. Oct 21, 20 the meaning, advantages and disadvantages of joint family has been discussed in this article. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. Why is joint hindu family business established in india.
Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. Ive done business with my wife, daughter, soninlaw, and various mixtures of those. Sep 01, 20 joint hindu family business is a distinct type of organisation which is unique to india. Indias 10 oldest family owned businesses siliconindia. 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. Joint hindu family business is a distinct type of organisation which is unique to india. Advantages and disadvantages of joint family essay in hindi. Do you need an answer to a question different from the above.
Joint hindu family business class 11 linkedin slideshare. What is the advantage and disadvantage of joint family in. The karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer. It does not arise out of the operation of law as in the case of joint hindu family. The advantages and disadvantages of a family business. Aug 12, 2014 though there are a lot of advantages of living together in a joint family, it has some disadvantages also.
A sole proprietorship form of business is very easy to form. Jan 20, 2018 joint hindu family business class 11 1. What are the advantages and disadvantages of joint ventures. Pdf files offer unique advantages over other file formats, transforming business workflows into seamless, secure processes where progress can be closely tracked. Name the type of partner whose association with the firm is unknown to general public. Therefore, it cannot undertake big and risky business. Joint hindu family business is a different type of organization, which is found only in india. Some suggestions for family business planning, startups. Write in your own words and avoid copying phrases and sentences from the article unless they are direct quotation. Benefits and disadvantages of joint hypermobility among musicians article pdf available in new england journal of medicine 32915. The meaning, advantages and disadvantages of joint family has been discussed in this article. The manager of the hindu joint family or karta is required to declare all sources of income in form tj.
Advantages and disadvantages of joint stock company. Attach files 187 wolf road, albany new york, 12205. There are certain rules and regulations to be followed by huf. 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. 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. Parties enter joint ventures to gain individual benefits, usually a share of the. It refers to a form of organization wherein the business is owned and carried on by the members of the hindu undivided family huf. 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. The joint hindu family business or the hindu undivided family huf is a unique form of business. Dec 29, 2017 class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. Pdf benefits and disadvantages of joint hypermobility. Understanding the concept of hindu undivided family articles. The operation of law creates a joint hindu family business.
In a joint family system basically all the members of the family live together under one roof and are related to each other. The owner of the business tends to promote their family members despite the fact that they are incompetent for the position. Dec 30, 2016 having a joint account requires the presence of trust between or among the account holders. In which form of business organization, every member acts both as an agent and as a principal. The joint hindu family business is controlled under the hindu law instead of the. 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. Joint hindu family business has generally limited financial and managerial resource. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. Identify the most important details that support the main ideas. Advantages and disadvantages of family entrepreneurship and. 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.
It is very difficult to locate the documents if the date is not known. It is a specific form of business organization found only in india. There are innumerable advantages of the joint venture. 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. Essay on advantages and disadvantages of joint family. Advantages and disadvantages of family entrepreneurship. 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 disadvantages of living in a joint family are mentioned below. Even within india its existence is restricted to only certain parts of the country.
Let us look at some of the disadvantages of the joint. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. A hindu joint family means what in any system of law prevailing in india is known as a hindu joint family or coparcenary. If the turn over of the business of a huf member exceeds over rs. 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. Property belongs to the family as a whole and all family income is pooled together. Without sharing the family business to external parties and using the family business profit for the well being of particular family. Cooperative societies meaning definition feature and types advantages and disadvantages of cooperative societies. The disadvantages of chronological classification are discussed below. 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. With a very small amount of capital one can start the business.
Class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. Foundation programme business environment and law paper 1 icsi house, 22, institutional area, lodi road, new delhi 110 003. A hindu undivided family huf act how to save income tax by forming. 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. This really meant that, the parents with all their children and grandchildren stayed together under one single roof. 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. Joint hindu family business and cooperative societies. Indian citizens with hindu ethnicity can come together and save a good amount of taxes by creating a huf. The inheritors of the joint hindu family business are called co. In particular, its very difficult to retain good talent at lower levels if their.
In the revived model, the families coming together may or may not belong to the same parent family. The outstanding advantage is that it allows vast mobilization of capital which otherwise is. Historically, for generations india had a prevailing tradition of the joint hindu family or undivided family. Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family. This, obviously, has a farreaching effect on the success of the company. 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. Chronological filing is not useful for large scale business units. Rut they deal only with a norm and not the reality. The karta is the eldest male member of a joint hindu. 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. A social study of the benefits of the joint family system. Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint.
A joint hindu family is headed by a karta, who is normally the eldest living male member of the family. 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. The traditional assumption behind such a deduction is that every hindu family is normally a joint family. Whose decisions are binding on all the members of the hindu undivided family business. There is always a lack of motivation among the members to work hard. A joint hindu family is normally joint in worshipkitchen business. 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. Before the multinational corporation, there was family business. 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. Consider these key points to determine if starting or joining a family business is the right decision for you. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india.
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