Commercial Applications
How profit is distributed in Joint Hindu Family Business?
- Men have more share than women
- The older members of family receives more profit than younger members
- Equal shares for all of them
- Only the Karta has all the profit
Sole Proprietorship
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Answer
Equal shares for all of them
Reason — In joint Hindu family business, the division of profit is in equal shares among all members. Under the Hindu Succession (Amendment) Act, 2005, both men and women have equal rights to inherit ancestral property and to share profits equally.
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Related Questions
The disadvantages suffered by Joint Hindu Family business are:
- Hasty Decisions
- Unlimited Liability
- Limited Capital
- All of these
Statement I: Expenses of management are high in Joint Hindu Family Business.
Statement II: The Karta alone is authorised to take all important decisions of the family business.
- Both I and II are correct
- Only I is correct
- Only II is correct
- Both I and II are wrong
Statement I: The secrets of business are known to the Karta only.
Statement II: The Karta is the head of the family.
- Both I and II are correct
- Only II is correct
- Only I is correct
- Both I and II are wrong
Statement I: The existence of a joint Hindu family business is not threatened by the death or incapacity of any member or the Karta.
Statement II: The Joint Hindu family comes to an end only after the total breakdown of the Joint family.
- Both I and II are wrong
- Both I and II are correct
- Only I is correct
- Only II is correct