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Distinguish between joined Hindu family business …

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Distinguish between joined Hindu family business and partnership?
  • 1 answers

Gaurav Seth 4 years, 3 months ago

Basis 

Joint Hindu Family Business

Partnership

Formation

The business belongs to particular family and

Quite easy.

Membership

The basis of memership in the business is birth in a particular family.

Any person can became its member. Maximum —2 Maximum —10 Banking firms 20 other firms

Liability of Members

The liability of Karta is unlimited but the liability of members is limited.

Unlimited.

Management

The business is controlled by the head of the family who is the oldest member and is called Karta.

Managed by Partners.

Secrecy

Karta maintains secrecy.

Relatively maintained.

Suitability

It is a specific form of business fond only in India. It is a type of business which is owned and carried on by the members of HUF.

For small and medium sized business.

Act

It is governed by the Hindu law.

It is governed by Partnership Act 1932.

http://mycbseguide.com/examin8/

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