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Distinguish between a joint Hindu family …

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Distinguish between a joint Hindu family business and partnership

Posted by Shivani Mishra 2 years, 9 months ago

CBSE > Class 11 > Business Studies

1 answers

Sia ? 2 years, 9 months ago

Basis	Joint Hindu Family Business	Partnership
Formation	The business belongs to particular family	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.

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