Commercial Applications
Answer
| S.No. | Basis of Distinction | Proprietorship | Joint Hindu Family Business |
|---|---|---|---|
| 1. | Basis of formation | No agreement required | By birth, under Hindu Succession Act (2005) |
| 2. | Number of members | One | Two or more. No maximum limit |
| 3. | Liability and risk | Unlimited, proprietor bears all risks | Limited except for karta |
| 4. | Position of minor | Cannot set up business | Can be a coparcener |
| 5. | Management | By the sole proprietor | By the karta |
| 6. | Division of profit | All profits belong to the proprietor | Equal share among all members |
| 7. | Legal existence | Dissolved upon the proprietor's death | Not dissolved upon the death of a member |
| 8. | Application of law | The Contract Act | Hindu Succession Act |
Related Questions
"The individual proprietor is the supreme judge of all matters pertaining to his business, subject only to the general laws of the land and to such special legislation as may affect his particular business." Comment.
Explain the characteristics of a joint Hindu family business.
Discuss the merits and demerits of a joint Hindu family business.
How Joint Hindu Family business overcome the shortcomings of the sole proprietorship?