Commercial Applications
Statement I: The Joint Hindu family business refers to a business which is owned by members of a Joint Hindu family.
Statement II: The Joint Hindu family form of business is one in which the family possesses some inherited property.
- Only I is correct
- Both I and II are correct
- Only II is correct
- Both I and II are wrong
Answer
Both I and II are correct
Reason — Statement I is correct because the Joint Hindu Family business refers to a business which is owned and managed by the members of a joint Hindu family. Statement II is correct because the Joint Hindu Family form of business is one in which the family possesses some inherited property — the share of ancestral property is inherited by a member from their parents or grandparents.
Related Questions
Which form of business ownership is represented in the image?
- Joint Hindu Family Business
- Partnership
- Sole Proprietorship
- Public Limited Company
A sole proprietor's business is experiencing rapid growth, but they are unable to meet financial demands. This reflects a limitation of the sole proprietorship structure.
- True
- False
Meera runs a bakery. Due to a drop in demand for cakes, she starts focusing on cookies and bread. She quickly adapts her business to market trends without needing approvals. Which merit of sole proprietorship does this demonstrate?
- Unlimited liability
- Secrecy of operations
- Flexibility of operations
- Lack of continuity
The liability of a sole proprietor is limited to the assets of the business.
- True
- False