Tag: introduction to huf

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Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

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.

  1. Partly false

  2. False

  3. Partly true

  4. True
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Karta has vast powers regarding the management and disposal of family property for legal necessity or benefit of the estate, making the statement true.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

Which of the following is an advantage of HUF?

  1. Favourable Credit Standing

  2. Greater Management Ability

  3. Profit Incentive

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The options provided (Favourable Credit Standing, Greater Management Ability, Profit Incentive) are generally not considered inherent advantages of an HUF compared to other business forms like a company or partnership.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

Increase in the number of working women and the rise in no family households are examples of _______________.

  1. the geographic shifts in population.

  2. the changing family.

  3. the changing age structure of the population.

  4. a better-educated and more white-collar population
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Changes in household composition, such as more working women and fewer people per household, are classic indicators of the 'changing family' structure in demographic and sociological studies.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

A and B are joint owner of a house. They rent it out of C and divide the net rent equally. A & B are ________.

  1. Partners

  2. Co-owners

  3. Principal & agent

  4. Consignor & Consignee
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Co-ownership refers to the division of ownership of something into two or more heads and working some business out of it to achieve common goals. This act can be passed through an agreement between the co-owners or even it can be done through the operation of law which will be bound on all the co-owners.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

Every partner is personally liable for the debts of the firm; in a joint family business only __________ is personally liable.

  1. Male member

  2. Karta

  3. Major male member

  4. Minor male member
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Hindu Joint family business are the type of business which are run by the members of a joint family under Hindu Succession Act, 1956 to achieve common goals. 

In Hindu Joint family business, Karta is the head of the family and manages everything in the business. Karta has the most power in a Hindu family business.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

HUF is governed by __________.

  1. The Indian Partnership Act, $1932$

  2. Hindu Law

  3. The Companies Act, $2013$

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Hindu Joint family business are the type of business which are run by the members of a joint family under Hindu Succession Act, 1956 to achieve common goals. 

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

In a Hindu Undivided Family business only the _____ get a share in the business by virtue of their being part of the family.

  1. Female members

  2. Male members

  3. Both (a) & (b)

  4. Either (a) or (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.