Hindu undivided family business - class-XI
hindu undivided family business
Questions
Identify which statement is true and which is false?
$1.$ Any person can become member of HUF.
$2.$ In a HUF business, in the event of death of any of the co-parcener, his wife can claim share of profit.
$3.$ In a HUF business, the liability of the karta is Unlimited.
Select the correct answer from the options given below.
- $2$ and $3$
- $1$ and $3$
- $3$ and $2$
- None of above
Any person can become member of HUF.
- False
- True
- Partly true
- None of above
The Hindu Undivided Family business governed by ______________.
- Contract law
- Hindu law
- Muslim law
- Company law
Which of the following statements is incorrect ?
- The Partnership Act, 1932 does not prescribes the maximum number of partners in a firm
- An agreement to carry on business in future cannot be the basis of partnership
- A permanent business undertaking is not essential for the formation of partnership
- Members of H.U.F. who carry on business and shares profits among them are also treated as partners
Which of these statements is true in respect of a Joint Hindu Family business?
- Joint Hindu Family firm cannot have more than $10$ members
- Joint Hindu Family has a perpetual existence
- Liability of Manager is limited
- Consent of all the members is necessary to admit a new member
Which of these is not true _________.
- In JHF a karta has unlimited liabilities
- Joint Hindu Family business is covered by Hindu law
- A minor cannot be a member of Joint Hindu family business
- In Joint Hindu family all the powers are vested in the karta
A HUF should be registered with ___________.
- Not required at all
- Registrar of societies
- Registrar of firms
- Registrar of companies
Karta of HUF is the ________ of his family.
- creditor
- representative
- employee
- none of the above
Who all can be Coparceners in HUF?
- Daughters of family
- Sons of family
- Both a and b
- None of the above
Members of HUF are known as ______.
- partners
- shareholders
- members
- coparceners
Head of HUF is known as ______.
- karta
- coparceners
- manager
- head
In case of HUF what are liabilities of coparcener and Karta?
- Both have unlimited liability
- Coparcener's liability is limited while Karta's liability is unlimited
- Karta's liability is limited while Coparcener's liability is unlimited
- Both have limited liability
When partnership is between two HUF than ____________.
- members of both the HUF are taken in account for the calculation of maximum number of person who can form a partnership firm including minors
- members of both the HUF are taken in account for the calculation of maximum number of person who can form a partnership firm excluding minors
- there can not be a partnership between two HUF
- none of the above
Identify which statement is true and which is false?
1. Any person can become member of HUF.
2. In a HUF business, in the event of death of any of the co-parcener, his wife can claim share of profit.
3. In a HUF business, the liability of the karta is Unlimited.
Select the correct answer from the options given below.
- 2 and 3
- 1 and 3
- 3 and 2
- None of the above
Which of the following can be treated as disadvantage of HUF form of business?
- HUF business has generally limited financial and managerial resource.
- There is always a lack of motivation among the members to work hard.
- Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.
- All of above
Profit sharing among members in an HUF is done according to _______.
- members status in family
- amount of work done by a member
- equally
- according to the age of the member
The members of an HUF are also known as _______.
- family
- partners
- co-parceners
- none of the above
The liability of the karta is __________.
- Llmited
- unlimited
- not liable
- none of the above
The business affairs of an HUF is managed by _______.
- managing director
- parents of minors
- karta
- eldest male and female member of the family
An HUF continues to exist even upon the death of the Karta.
- Partly false
- False
- Partly true
- True
A HUF cannot enter into partnership agreement with others.
- Partly false
- False
- Partly true
- True
Karta is a person with limited powers, but, within the ambit of his sphere, he possesses such vast powers as are possessed by none else.
- Partly false
- False
- Partly true
- True
Which of the following is an advantage of HUF?
- Favourable Credit Standing
- Greater Management Ability
- Profit Incentive
- None of the above
What is the maximum strength of HUF?
- $20$
- $10$
- $50$
- No limit
Karta in HUF is _______ of his family.
- owner
- representative
- oldest member
- none of the above
A and B are joint owner of a house. They rent it out of C and divide the net rent equally. A & B are ________.
- Partners
- Co-owners
- Principal & agent
- Consignor & Consignee
Every partner is personally liable for the debts of the firm; in a joint family business only __________ is personally liable.
- Male member
- Karta
- Major male member
- Minor male member
HUF is governed by __________.
- The Indian Partnership Act, $1932$
- Hindu Law
- The Companies Act, $2013$
- None of the above
In a Hindu Undivided Family business only the _____ get a share in the business by virtue of their being part of the family.
- Female members
- Male members
- Both (a) & (b)
- Either (a) or (b)
In Hindu Undivided Family (HUF) from of business all the members of a Hindu undivided family own the business _______________.
- Individually
- Separately
- Jointly
- With society
Which of the following can be treated as advantage of HUF from of business?
- Every co-parcener is assured a share in the profits irrespective of his contribution to the profits irrespective of his contribution to the successful running of the business.
- The karta enjoys full freedom in conducting the family business.
- A HUF business provides opportunity for the young members of the family to get the benefit of knowledge and experience of the elder members and also helps in inculcating virtues like discipline, self-sacrifice, tolerance etc.
- All of above
In a HUF business, in the event of death of any of the co-parcener, his wife can claim share of profit.
- False
- True
- Partly true
- None of above
In a HUF business all co-parceners have equal share in the profits of the business.
- False
- True
- Partly true
- None of above
In a HUF business, the liability of the karta is _______________.
- Limited to the extent of share of co-parceners
- Limited to the extent as may be determined by relatives
- Unlimited
- (a) or (b)
The liability of each member of the HUF business is _____________.
- Limited to the extent of share of KART
- Limited to the extent of his share in the business
- Unlimited
- Limited to the extent as may be determined by relatives
Which of the following can be treated as advantage of HUF form of business?
- The liability of the co-parceners is limited, except for that of karta which makes the karta to manage the business in the most efficient manner.
- A HUF business is not affected by the insolvency or death of any member including that of karta.
- Both (a) and [b)
- (a)or(b)
Which of the following can be treated as disadvantages of HUF form of business?
- HUF business has generally limited financial and managerial resource.
- There is always a lack of motivation among the members to work hard.gains.
- Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.
- All of above
No stranger can ever be qualified to be a karta, but an adopted son who is the eldest in the family can be qualified.
- False
- True
- Partly true
- None of above
Which of the following is/are features of KARTA in HUF form of business?
- Karta is the eldest male member of the family.
- Karta is the custodian of the income and assets of the HUF.
- Karta is to manage the HUF property.
- All of above
Which of the following can be treated as advantages of HUF form of business?
- A HUF business is not affected by the insolvency or death of any member including that of karta.
- An inefficient karta can also do harm to the business.
- The continuity of business is always under threat It may be due to a small rift within the family and if aco- parcener asks for a partition the business is closed.
- Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.
Which of the following can be treated as disadvantages of HUF form of business?
- An inefficient karta can also do harm to the business.
- In a HUF business the male members of three successive generations are involved which may leads to conflict between generations.
- The continuity of business is always under threat. It may be due to a small rift within the family and if a coparcener asks for a partition the business is closed.
- All of above