Joint hindu family business has generally limited financial and managerial resource. Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint. Hindu s widow get a share in the joint family property. Cbse class xi business studies forms of business organisation joint hindu family business 11th class chapter 2nd part1. A hindu joint family has no legal entity distinct and separate from that of the members who constitute it. Hindu undivided family business it is a precise kind of business structure found only in india.
The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india. As the name suggests, it is type of organization in which all the members of hindu undivided family manage and control the business with the direction of head of the family. Joint hindu family business an affectionate business. Indias 10 oldest family owned businesses siliconindia. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. The parent company is tata sons, which is the main holding company of the tata group, and about 65% of stock in these companies is owned by tata charitable trusts, mainly the ratan tata trust and the dorab tata trust.
The karta is the eldest male member of a joint hindu. It is one of the oldest form of organizations and in existence only insome parts of the country. Joint hindu family business free download as word doc. What are the different classes of property under hindu law. Joint hindu family business free download pdf kupdf. Before the multinational corporation, there was family business. Huf is purely a creature of law and cannot be created by an act of parties except in case of adoption and reunion. Characteristics of a joint hindu family business 3. A business, which continues from one generation to another generation is known as joint hindu family business or firm. A joint hindu family is headed by a karta, who is normally the eldest living male member of the family.
The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. It is given due recognition by the income tax act, 1961, and by the joint hindu succession act, 1956, but it lacks legal status. What are the features of a joint hindu family business. This is special form of business organization, which now exists only in india. Mention the names of the systems that regulate the membership in joint hindu family. Even daughter in lawswidowed daughters who has returned back to their parental side are. The joint hindu family business is controlled under the hindu law instead of the. The members of joint hindu family business are not required for registering their business. Joint hindu family business definition, examples, diagrams toppr. It is also helpful in times of crisis when everyone act as support pillar for. Joint hindu family business is more stable than other business. 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. Davis, the joint family consists of males having a common male ancestor female offspring not yet married and women brought into the group by marriage.
The karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer. A joint family may encompass countless generations. 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. The head of the family is the head of the business also. A hindu undivided family or huf is a legal term related to the hindu marriage act. So it is running forever even when the karta is dead. In this lesson let us find out more about these types of business organisations. 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. Give an example of joint hindu family business in india. A partnership arises out of a contract, whereas a joint hindu family business arises by the operation of law and is not the result of a contract. Various forms of business organisation from which one can choose the right one include. The traditional assumption behind such a deduction is that every hindu family is normally a joint family. Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm.
Joint hindu family business cbse class xi business studies by ruby singh duration. Introduction a business enterprises is an organisation which is engaged in some business or commercial activity. Wherever, there is hindu undivided family, there is the scope of joint hindu family business. There is always a lack of motivation among the members to work hard. Well, any person born into the family boy or girl up to the next coming three generations is a part of.
Another form of business which is owned by the members of a joint hindu family and in which the family possesses some inherited property. Joint hindu family business is a form of organization which exists only inindia. A joint hindu family is normally joint in worshipkitchen business. Hindu joint family under mitakshara law the hindu joint family is a normal condition of the hindu society. Joint hindu family business is a different type of organization, which is found only in india. It does not have any separate and distinct legal entity from that of its members. 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. There are many joint family businesses in india, but i dont know what is a joint hindu family business. In a hindu joint family, the karta or manager occupies a pivotal and unique place in that there is no comparable office or institution in any other system in the world. Its origin can be traced to the ancient partriarchal system where the patriarch or the head of the family was the unquestioned ruler, laying down norms for the members of his family to follow. By taking birth in a hindu family and falling under three successive generations one can be called member of huf.
A business cannot be partitioned by metes and bounds in the case of partition for conversion of the family business into partnership. The operation of law creates a joint hindu family business. Joint hindu family business, though is an enlarged form of sole trading concern but it enjoys stability. The concept of joint family under hindu law as well as the huf in income tax act, 1961 is broadly the same.
In this business, an individual becomes a member of business by virtue of birth in a hindu family. What is the procedure for partition of a family business. A joint hindu family is normally joint in worshipkitchenbusiness. What are the aims and objectives of a joint hindu family. It is a specific form of business organization found only in india. Property under hindu law may be divided into two classes, viz. Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. Hindu joint family is a unit and in all matters it is represented by its karta. It is one of the oldest forms of business organization in the country. Important questions for cbse class 11 business studies. Dayabhaga law and mitakshara law stay tuned to byjus for more cbse class 11 business studies important questions, question papers, sample papers, syllabus, and commerce notifications. In every society and at every stage of development we. In a partnership no new partner is admitted without the consent of all the partners, while in the case of a joint hindu family firm a new member is admitted just by birth. Contents executive summary 2 the distinctiveness of family firms 5 strengths visions and values 6 risks family tensions 7 growth patterns and consequences 8 organisational imperatives recruitment and promotion perceptions of fairness 18 formalising structure 20 corporate governance structures 23 family councils promoting dialogue 23 the value of a board 24.
Borrowers have requested the bank to finance the aforesaid joint family business of the firm and to grant to the firm all or some or any of the credit facilities that may be agreed upon from time to time between the bank and the joint hindu family firm for sums not exceeding at any one time in the aggregate the sum of rs. Cbse class 11 business studies notes aglasem schools. Improving entrepreneurship and family business effectiveness through research and sharing of best practices, and familybusiness. Joint hindu family business kinship and descent social institutions. Before the industrial revolution, there was family business.
The entire law relating to hindu undivided family huf. Features merits introduction limitations examples 3. Find out the essential characteristics of joint hindu family. The tata family is a prominent indian business family, based in the city of mumbai. The joint hindu family business is a distinct form of organisation peculiar to india. For the indian students of sociology, the study of the indian family system deserves special attention, not only because they are born in indian families but also for here the family system differs in material respects from the western family. Basically, there are two kinds of members in a joint hindu family business, i.
Joint family property or coparcenary property signifies the property in which all the coparceners have community of interest and unity of possession. The eldest male member of the joint family is the karta, who is responsible for managing and controlling the business operations. Disadvantages of joint hindu family business 1 limited. Difference between a partnership and joint hindu family. Introduction family is one of the universal and permanent institutions of mankind. Every business enterprises is a separate and distinct unit of business. Importance of joint hindu family an affectionate business. Approximately 18 percent of shares are held by the pallonji mistry family, and the rest by. Joint hindu family can be regarded as the benefit to the business because by agreeing the contract the business will be run on the basis of the hindu law this establishment is done so that the businesses will not be broken down within the organization due to the petty reasons apart from this, the joint families are regarded as the. A huf is a fluctuating body, its size increases with birth of a member in the family and decreases on death of a member. Hindu joint family business has enforced under the mitakshara law. Form of business organization which is owned and run by members of hindu undivided family. The entire profit of business goes into the common pool of family. Joint hindu family business class 11 linkedin slideshare.
Without sharing the family business to external parties and using the family business profit for the well being of particular family. Therefore, it cannot undertake big and risky business. This form of organization has ownership in thehands of members of a hindu undivided family. However, with urbanization and economic development, india has witnessed a break up of traditional joint family into more nuclearlike families, and the traditional joint family in india accounted for a small number of indian households.
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