In this lesson let us find out more about these types of business organisations. Joint hindu family business the joint hindu family business is a distinct form of organisation peculiar to india. A business, which continues from one generation to another generation is known as joint hindu family business or firm. A business, which is owned by family members who are living jointly, is known as hindu joint family business. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india.
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. These businesses are managed by all members of a joint hindu family. The joint hindu family jhf business is a form of business organisation run by hindu undivided family huf, where in the family members of. In every society and at every stage of development we. Apart from this, hindu religion is the largest religion in india than any other religion. In sole proprietorship business, the proprietor has full control over each and every activity of the business. In a partnership firm, every partner has a right to take part in the conduct and management of the firms business, whereas in a joint hindu family firm, the members have no such rights.
Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. The business is carried outbuy the male members of a undivided family. Characteristics of a joint hindu family business 3. Joint hindu family business is a form of organization which exists only inindia. Thus, the business organisation in which a single person owns, manages. Hindu undivided family is involved in a business, giving the ownership to head of the family. Nevertheless, this type of business is losing its ground with the gradual decline in. The joint hindu family business is a distinct form of organisation peculiar to india. Why is joint hindu family business is established only in india. If top professionals feel they will not have room to grow because the scion of the business family and his cousins will grab. Joint hindu family business an affectionate business. Joint hindu family business is a type of business organization which is found only in india. A joint hindu family is headed by a karta, who is normally the eldest living male member of the family. Joint hindu family business free download pdf kupdf.
Disadvantages of joint hindu family business 1 limited. This form of organization has ownership in thehands of members of a hindu undivided family. The meaning, advantages and disadvantages of joint family has been discussed in this article. There are mammoth of promoter groups that have been around for decades such as tatas, birlas, mahindras, bajajs, goenkas and godrejs. So the concept of hindu undivided family business took birth in india. The head of the family exercises full control over the affairs of the business. Joint hindu family business meaning, examples and conclusion. Well, any person born into the family boy or girl up to the next coming three generations is a part of. In the joint family, all the members do the business and control the system and follow the rules. The joint hindu family business is controlled under the hindu law instead of the.
These businesses are totally governed by hindu laws. Joint hindu family or hindu undivided family huf is an exclusive feature of hindu law. It is not practised or followed elsewhere in the world. A joint hindu family is normally joint in worshipkitchen business. Issues relating to succession planning introduction india has an almost unique system of promoters who own and manage much of the corporate sector. In this article, we will discuss about joint hindu family business and how is the joint hindu family business formed. Huf or hindu undivided family is defined under the hindu law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. Why is joint hindu family business is established only in. The birla family business which is a market leader in products ranging from cement from apparel, traces its. Joint hindu family business is a distinct type of organization that is unique in india. Distinction between partnership and joint hindu family firm. 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. What are some examples of a joint hindu family business.
Their survival beyond three generations introduction family as a social institution is one of the oldest surviving goode, 1982, but only in recent years family business, an important arm of it started receiving academic attention. Historically, for generations india had a prevailing tradition of the joint hindu family or undivided family. Lets start with a brief explanation of joint hindu family business. It is governed by the hindu law, which is one of the several religious laws. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. A joint hindu family business is not created by any agreement or contract, because it exists only by operation of hindu law. This is special form of business organization, which now exists only in india. It does not have any separate and distinct legal entity from that of its. A case study savitri shahani there has been no systematic research into the structure of the family in the field whether in rural or urban areas, and the most serious writers on the subject hare relied on general observations. Introduction family is one of the universal and permanent institutions of mankind. The success of joint hindu family business is mostly dependent upon the efficiency of the karta and the mutual understanding between the coparceners. It means only one person or an individual is the owner of the business.
Madhu bhatia, tutorials point india private limited. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india. The head of the family is the head of the business also. A joint family may encompass countless generations. The business of joint hindu family is controlled under the hindu law instead. Joint hindu family is a unit considers by law as separate entity for the purpose of taxation, but it is not considered as separate legal person. It is important to note that the joint hindu family firm with the joint ownership of the business is created by the operation of hindu law and not by the contract between the coparceners the business of joint hindu family is controlled and managed by the eldest male member of the family who is known as karta and other members of the.
A joint hindu family business is one that is owned by all the males in the family. The karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer. The karta is the eldest male member of a joint hindu. Scribd is the worlds largest social reading and publishing site. 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. It is one of the oldest form of organizations and in existence only insome parts of the country. A joint hindu family is normally joint in worshipkitchenbusiness. There have been several questionnaires which aim to find out the role of the joint family in hindu businesses and. Chapter 4, joint hindu family business and cooperative society. Joint hindu family business is the oldest and specific form of business organization found only in india. What are the features of a joint hindu family business. Even within india its existence is restricted to only certain parts of the country.
When the business continues from one generation to another in a hindu family it becomes a joint hindu family business. Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family. Tata sons private limited it is a joint hindu family business which is headquartered in mumbai. 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 joint hindu family business, there is no restriction on the maximum number of members. It is said that the joint hindu family comes into existence by the law of inheritance it is important to note that the joint hindu family firm with the joint ownership of the business is created by the operation of hindu law and not by the contract between the coparceners the rights and liabilities of coparceners are determined by the provision of the hindu law. Throughout the world, only india is the place where you find joint family culture. Joint hindu family firm is created by the operation of law.
Joint hindu family focuses in the personal business. Introduction joint hindu family business is a form of commercial organization where a business is owned by the members of a hindu family living jointly. It does not have any separate and distinct legal entity from that of its members. It is a specific type of organization that is restricted to certain parts of india. In joint hindu family business, only manager has the implied authority. The familys members make the partner that is good plan for develop the business. Joint hindu family business is a different type of organization, which is found only in india.
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