Tag: joint hindu family business

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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

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.

  1. $2$ and $3$

  2. $1$ and $3$

  3. $3$ and $2$

  4. None of above
Reveal answer Fill a bubble to check yourself
A Correct answer
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

Any person can become member of HUF.

  1. False

  2. True

  3. Partly true

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

Any person can become member of HUF-this is a false statement. 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.

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

The Hindu Undivided Family business governed by ______________.

  1. Contract law

  2. Hindu law

  3. Muslim law

  4. Company law
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Hindi Undivided Family business governed by Hindu Law. 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.

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 statements is incorrect ?

  1. The Partnership Act, 1932 does not prescribes the maximum number of partners in a firm

  2. An agreement to carry on business in future cannot be the basis of partnership

  3. A permanent business undertaking is not essential for the formation of partnership

  4. Members of H.U.F. who carry on business and shares profits among them are also treated as partners
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The statement that members of an HUF are treated as partners is incorrect because an HUF is a separate legal entity governed by Hindu law, not the Partnership Act. The other statements correctly describe aspects of partnership law.

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 these statements is true in respect of a Joint Hindu Family business?

  1. Joint Hindu Family firm cannot have more than $10$ members

  2. Joint Hindu Family has a perpetual existence

  3. Liability of Manager is limited

  4. Consent of all the members is necessary to admit a new member
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The firm enjoys continuity of operations as its existence is not subject to the death or insolvency of a co-parcener or even of the Karta himself. Thus, it has a perpetual life like the public limited company.

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 these is not true _________.

  1. In JHF a karta has unlimited liabilities

  2. Joint Hindu Family business is covered by Hindu law

  3. A minor cannot be a member of Joint Hindu family business

  4. In Joint Hindu family all the powers are vested in the karta
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The basis of membership in business is birth in a particular family. As soon as a child (boy or girl)  born into the family, he becomes a member and ceases to be a member by death. Hence, there is no age limit for membership in Joint 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

A HUF should be registered with ___________.

  1. Not required at all

  2. Registrar of societies

  3. Registrar of firms

  4. Registrar of companies
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A HUF need not be registered. To begin a Hindu Undivided family business there must be minimum of 2 related family members, there must be ancestral property that they have inherited. 


There is no need for registration and documentation and admission of new member is by birth.

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 of HUF is the ________ of his family.

  1. creditor

  2. representative

  3. employee

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

A Hindu Undivided Family is regulated by the Hindu succession Act. It consists of karta the head of the family and co-parceners, the members of the family. Hence, Karta of HUF is of his family representative.

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

Who all can be Coparceners in HUF?

  1. Daughters of family

  2. Sons of family

  3. Both a and b

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

False.

Only male members can be the coparcener in the Joint Hindu Family Business .But according to the Hindu Succession Act,1956 a woman after the death of her husband and in the absence of a male successor can become the coparcener of the 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

Members of HUF are known as ______.

  1. partners

  2. shareholders

  3. members

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

Joint hindu family business is regulated by the Hindu succession act. According to it the business is owned and managed by the karta, the head of the family and a;; the members of the family are its co parceners. Hence, the head of the family business is  called as karta.