No outsider can become the member of Joint Hindu Family Business. It is governed by the Hindu Law. This low status has meant several disadvantages to the women folk have no right over family property. In a Joint Hindu Family firm minor is a partner. Because an individual is not forced to handle different activities, this not only reduces the burden of work but also leads to fewer errors in judgements.
Any member is free to get separate from Joint Hindu Family Business. These types are described in the following sections. Especially for agricultural tasks, the joint family is better fitted. There is no inspiration for the accumulation of capital and investment. At a tender age of 19, he started a small manual assembly shop in Sadar Bazaar area in Delhi where he manufactured fountain pens under the name Luxor Writing Instruments Pvt. Source: Website of Coca Cola company. In other forms of organisations like partnership and company, there is no such problem.
On the other hand they have to work hard for others. Stability: The existence of the Joint Hindu Family firm does not come to an end by the death, insanity, or bankruptcy of any coparcener. Status of Joint Hindu Family firm and its members is one and the same. But, as per Hindu Law any member who is unsatisfied with the decision of Karta can demand partition. For which of the following types of business do you think a partnership form of organisation would be more suitable, and why? It comes into existence by the operation of Hindu law. It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts.
The status of a minor changes when he attains majority. The business assets of an organisation amount to Rs. It should explicitly states your findings. Dissatisfied shareholders in such a situation have no option but to sell their shares and exit the company. Joint Hindu Family Firm is created by the operation of law. Because he knows that he is capable of doing hard work, does not do so.
As sole proprietorship is the least regulated form of business, it is easy to start and close the business as per the wish of the owner. As a result, partnership firms face problems in expansion beyond a certain size. It is, therefore, difficult for any member of the public to ascertain the true financial status of a partnership firm. As a result of being a separate legal entity, it is not affected by the entry or exit of its members. There are two systems which govern membership in the family business, viz. However, the remaining partners may if they so desire continue the business on the basis of a new agreement. However, such factors do not affect the continuity of business in the case of organisations like joint Hindu family business, cooperative societies and companies.
Childish play between the two aged and the little babies, the funny talks of the old, the broken language of the younger ones, the expression of sisterly, brotherly and motherly love. Lack of resources is one of the major reasons why the size of the business rarely grows much and generally remains small. A project on Joint Hindu Family should be presented in the below mentioned manner. Suppose Akshay is a shareholder in a company holding 2,000 shares of Rs. Merits The advantages of the joint Hindu family business are as follows: i Effective control: The karta has absolute decision making power.
The edible oil products are grouped around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand while fruit drinks bear the name Safal. So, operations are not terminated and continuity of business is not affected. Similarly, in cases where services of a professional nature are required, partnership form is much more suitable. It is one of the oldest forms of business organisation in the country. More hands at home can finish off the work with minimum I time and provide enough leisure to the members to relax. These limitations of management reflect in the efficiency and effectiveness of business operations.
Personal assets may be used for repaying debts in case the business assets are insufficient. Members of the family are called 'co-parceners'. Easy to Start: It is very easy to start the Joint Hindu Family Business. A private company needs to have only two directors as against the minimum of three directors in the case of a public company. The reward comes in the form of profits which are shared by the partners in an agreed ratio. This statement refers to a Partnership b Joint Hindu family business c Sole proprietorship d Company 7.
It is well- balanced and maintained in Joint Hindu Family Business. Three successive generations can be members in the business. They can hardly resist their elders even for just causes because obedience is enforced upon them. However, the remaining partners can enter into a fresh agreement and continue to run the business. It provides conclusive proof of the existence of a partnership firm.
It was only in 1892 that Mr. Nature and Meaning : The Joint Hindu Family Firm is the next non-corporate, group ownership form of family business operative in India. If credit is extended to Simplex Solutions on the basis of these negotiations, Rani would also be liable for repayment of such debt, as if she is a partner of the firm. Partnership serves as an answer to the needs of greater capital investment, varied skills and sharing of risks. Also, due to limited resources, sole proprietor may not be able to employ and retain talented and ambitious employees.