Difference between sole proprietorship partnership and joint hindu family business
Meaning It is a commercial organization which It is a commercial organization. Membership Not more than single owner No limit on membership. Up to Generations. Ownership Business assets and properties are All the family members are joint owned by the proprietor owners.SEE VIDEO BY TOPIC: Partnership Vs Joint Hindu Family- Partnership vs Agency - Partnership vs Joint Venture,
SEE VIDEO BY TOPIC: Types of Firms:Sole Proprietorships, Partnerships,CorporationsContent:
- Various Forms of Business Organisation: Sole Proprietorship, Partnership & Hindu Undivided Family
- Distinguish between sole proprietorship and joint Hindu family business.
- Difference between sole proprietorship and partnership and joint hindu family business
- Key Differences between Sole Proprietorship and Joint Hindu Family Firm – A Comparison Chart
- Distinguish Between – Proprietorship and Joint Hindu Family Firm
- Difference Between Sole Proprietorship and Partnership
Various Forms of Business Organisation: Sole Proprietorship, Partnership & Hindu Undivided Family
Partnership is the result of an agreement between the parties. In other words it can be said that mutual agreement between persons constituting Partnership is necessary for the establishment of partnership. On the other hand Hindu Joint Family Firm is the result of status, not of agreement.
Members of Hindu joint family firm inherit such business in succession. Following are the notable points of distinction between Partnership Firm and Hindu Joint family Firm. Partnership Firm. Hindu joint family Firm. The relation of partnership aeries from contract , and not from status. The relation of Hindu Joint Family Firm arises from status and not from contract.
It arises by operation of law. In partnership firm members will have no right by birth. In Hindu joint family business son gets right by birth. Every Joint family Firm is governed by the codified Hindu Laws. In partnership rights and duties of partners are determined by the provisions of Partnership Act and Partnership Agreement.
In Hindu Joint family Firm rights and duties of members of the family are controlled by such general principles of Hindu law which contract the transactions of joint family. A joint Hindu family firm is limited to Hindu Religion, that too the caste to which the members belong. In absence of an agreement of contrary intention on death or insolvency of any partner Partnership Firm Dissolves.
A joint Hindu Family firm does not dissolve on the death of any family member. Successor of the deceased gets his interest and business of the firm continues as usual. No person can be introduced as a partner without the consent of all the members. A member of Hindu joint family acquires an interest in the firm business by birth, marriage, adoption etc. No consent of other members necessary. Other members cannot deprive his right.
In partnership any member can ask for the account of acts done by his co-partners. Any partner can ask for details of profit and loss also. In Hindu joint family any member cannot ask for account of profit and loss of serving his relation with the business. Partnership is a specific application of the principles of agency. The principal of agency does not apply in case of Joint Hindu family firm.
Manager of a Hindu joint family firm is vested with a right to take loan, pledge family property for the conduct of the business, but other members of the family do not have these right.
There is restriction on the maximum number of members in the case of a partnership firm. Minimum two and maximum twenty partners allowed. There is no such restriction. In partnership every partner is jointly and severally liable for debts and liabilities of the firm. Liability of every partner is unlimited. Beside the property of the firm personal property of a firm is also liable for the liabilities of the firm.
The liability of the members is limited to the extent of his interest in the assets of Hindu Joint Family. Share to Twitter Share to Facebook. Labels: Law of Contracts , Partnership. Deepak pandey 21 July at Subscribe to: Post Comments Atom. See Also.. Possession : Meaning, Definition and Kinds of possession.
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Distinguish between sole proprietorship and joint Hindu family business.
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Difference between sole proprietorship and partnership and joint hindu family business
There are various forms of business organization in which the business entity can be organized, managed and operated. Sole Proprietorship is one of the oldest and easiest forms, which is still prevalent in the world. In this type of business, only one person owns, manages and controls the business activities. The individual who runs the business is known as a sole proprietor or sole trader. On the contrary, Partnership is that form of business organization two or more individuals come together and agree to share profit and losses of the business, which is carried on by them. The individuals who run the business are called partners. Many people utter confusion regarding these two business forms.
Key Differences between Sole Proprietorship and Joint Hindu Family Firm – A Comparison Chart
Partnership is the result of an agreement between the parties. In other words it can be said that mutual agreement between persons constituting Partnership is necessary for the establishment of partnership. On the other hand Hindu Joint Family Firm is the result of status, not of agreement. Members of Hindu joint family firm inherit such business in succession.
Distinguish Between – Proprietorship and Joint Hindu Family Firm
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It is a form of commercial organization. The ancestral family business is conducted by the family members of Joint Hindu Family. It lacks stability since the existence of sole trading concern depends upon the survival of the sole trader. Question Papers. Question Papers Textbook Solutions
Difference Between Sole Proprietorship and Partnership