Having a joint account requires the presence of trust between or among the account holders. The following is a list of the pros and cons of having joint accounts. A joint hindu family business is not dissolved on the death, lunacy or insolvency of any of the copartners. The hindu joint family is the normal condition of the hindu society. Write in your own words and avoid copying phrases and sentences from the article unless they are direct quotation. It is one of the oldest forms of business organisation in the country. Basically, there are two kinds of members in a joint hindu family business, i. What are the features of a joint hindu family business. Why is joint hindu family business established in india.
It is a specific form of business organization found only in india. Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint. For the success of a family business, one must overcome those challenges and capitalize on the opportunities. Joint hindu family business has generally limited financial and managerial resource. There are innumerable advantages of the joint venture. Before the industrial revolution, there was family business.
The case of japanese investors in the united states jeanfrancois hennart college of commerce and business administration, university of illinois at urbana champaign, champaign, illinois, u. What are the advantages and disadvantages of a joint. A hindu joint family means what in any system of law prevailing in india is known as a hindu joint family or coparcenary. All business affairs are dealt with by the senior most male member of the hindu family. Features merits introduction limitations examples 3. This is special form of business organization, which now exists only in india. Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. Though there are a lot of advantages of living together in a joint family, it has some disadvantages also. The disadvantages of living in a joint family are mentioned below. Of course the classic advice on this is not to mix business with family.
However, according to carlos garcia, the franchisor of total clean, franchising is not an easy way to grow your business. A joint family also undivided family, joint household, extended family system is a large undivided family where more than one generation live together in a common house. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india. Parties enter joint ventures to gain individual benefits, usually a share of the. All the male members are blood relatives and all the women are either mothers, wives, unmarried daughters, or widowed relatives, all bound by the common sapinda. The joint hindu family business or the hindu undivided family huf is a unique form of business. It is governed and dictated by the hindu law, which is one of the several religious laws prevalent in india so who all are members of such an organization.
Well, any person born into the family boy or girl up to the next coming three generations is a part of. This system could prevail for decades for several reasons. It is governed by the hindu law, which is one of the several religious laws. In joint hindu family business, only manager has the implied authority. Indian culture and tradition is well known to various other countries. What are the advantages and disadvantages of franchising. A hindu joint family or hindu undivided family huf or a joint family is an extended family arrangement prevalent among hindus of the indian subcontinent, consisting of many generations living under the same roof.
A family business comes with its own set of unique advantages and. Opening an indian subsidiary advantages and disadvantages. What is the advantage and disadvantage of joint family in. Joining a family business is tricky business because money is always on the table. Disadvantages of joint hindu family business 1 limited. Living in a joint family, you may have lack of leadership and decision making qualities as head of the family will decide and does all the important decisions. In joint hindu family business, there is no restriction on the maximum number of members. Tamil culture joint family system joint family system is one of the great cultures of indian people. The merger will also reduce competition and could lead to higher prices for consumers. We also identified multiple gaps in contemporary family business research. Sometimes, family members arent truly interested in joining the family business, but do so anyway because its expected of them. The operation of law creates a joint hindu family business. Forms of business organisation business environment 28 3.
Before the enlightenment of greece and the empire of rome, there was family business,said willium o hara, an academician specializing in family business to demonstrate the longevity and endurance of the family businesses tradition. Family companies come with their set of advantages and disadvantages. Characteristics of a joint hindu family business 3. To every action, there is an equal and opposite reaction. It does not have any separate and distinct legal entity from that of its members. Sabine reddy school of business administration, wayne state university. It refers to a form of organization wherein the business is owned and carried on by the members of the hindu undivided family huf. Joint hindu family business is the oldest and specific form of business organization found only in india. This really meant that, the parents with all their children and grandchildren stayed together under one single roof.
There is always a lack of motivation among the members to work hard. It allows only the male members to be coparceners in the business. It does not arise out of the operation of law as in the case of joint hindu family. Joint hindu family business is a distinct type of organisation which is unique to india.
Joint bank accounts have their advantages and disadvantages. Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family. Advantages and disadvantages of living in a joint family a joint family was a phenomena found only in india of the bygone days. A joint family may encompass countless generations. The advantages and disadvantages of a family business. In a joint account, its easier to access the funds when the spouse passes away. The traditional assumption behind such a deduction is that every hindu family is normally a joint family. Identify the most important details that support the main ideas. Advantages of joint ventures are speed, access, sharing of resources and the leveraging of underutilized resources, high profits, back end income, low or no risk opportunities and massive leverage disadvantages of joint ventures are the possibility of being ripped off or disappointed by unscrupulous and unprofessional jv partners, and hurting your reputation andor customers. Others members of the family are known as coparceners, who become the member of the business right at the time of their birth. A merger occurs when two firms join together to form one. India has become 7 th largest economy in the world and by 2025, it will become 3 rd largest economy in the world further, the government of india has initiated various new regulations and policies in order to improve the environment and make doing business in india a lot easier than what it used to be before in order to facilitate registration of wholly owned subsidiary in india. What are the pros and cons of working for a familyrun business. Without sharing the family business to external parties and using the family business profit for the well being of particular family.
Typically, one partner has a product, the other has a distribution network. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. Managers cannot be effective when normal rules can be applied to some, but. The head of the family is the head of the business also. Even within india its existence is restricted to only certain parts of the country. A partnership usually involves a continuing, longterm business relationship, whereas a joint venture is based on a single business project. Advantages and disadvantages of family entrepreneurship. There is no right in a minor or an adult member of the family to bring a. A joint hindu family is normally joint in worshipkitchen business. In a joint hindu family business no member of the family can say that he. A business, which continues from one generation to another generation is known as joint hindu family business or firm. Essays, research papers and articles on business management.
Let us look at some of the disadvantages of the joint. A joint family or undivided family is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many generations living in the same household, all bound by the common relationship hindu undivided family huf is treated as a person under section 231 of the incometax act, 1961 herein after referred to as the act. A joint hindu family is headed by a karta, who is normally the eldest living male member of the family. The property of a joint hindu family may consist of ancestral property, joint acquisitions self acquisitions thrown into the common stock however, even in the absence of any property, the joint hindu family may still be in existence as a joint hindu family damodar krishnaji nirgude v. Rut they deal only with a norm and not the reality.
Advantages and disadvantages of living in a joint family. The manager of the hindu joint family or karta is required to declare all sources of income in form tj. In the public sector, employees that fit into this category would simply be fired. It is a specific type of organization that is restricted to certain parts of india. The pros and cons of a family business often show that family loyalty happens above everything else, but that can be a good thing when others are included in the business process. I read somewhere that 62 percent of the gross national product of the western world is produced by family businesses. Indias 10 oldest family owned businesses siliconindia.
There are many good business and accounting reasons to participate in a joint venture often shortened jv. The joint hindu family business is a distinct form of organisation peculiar to india. In this form of business ownership, all members of a hindu undivided family do business jointly under the control of the head of the family who is known as the karta. Before the multinational corporation, there was family business. The meaning, advantages and disadvantages of joint family has been discussed in this article. Sometimes, family members arent truly interested in joining the family business. Advantages and disadvantages of joint family essay in. The joint hindu family business is controlled under the hindu law instead of the. This allows the business owner to focus on supporting the franchisees from one location and ensures that all their customers needs are met.
Property belongs to the family as a whole and all family income is pooled together. In a joint family system basically all the members of the family live together under one roof and are related to each other. Therefore, it cannot undertake big and risky business. Joint hindu family business class 11 linkedin slideshare. Partnerships and joint ventures can be similar but in fact can have significantly different implications for those involved.
Joint hindu family business is a different type of organization, which is found only in india. Even though there are many changes that exists in the culture of indians this joint family system is still available in the minds of the people. Thanks for the a2a as posted in the picture, the joint hindu family business is a family business involves only the members of the family. However, the disadvantages also tag along in the process. Partnering with a business that has complementary abilities and resources, such as finance, distribution channels, or technology, makes good sense. The importance of family business as an academic discipline. The new firm will have an increased market share, which helps the firm gain economies of scale and become more profitable.
Upload and share your knowledge on business related things. Hindu undivided family is involved in a business, giving the ownership to head of the family. Basic information 1 2 name of hindu joint family as registered with lhdnm. What are the aims and objectives of a joint hindu family. Ive done business with my wife, daughter, soninlaw, and various mixtures of those. Karta and his legal position in joint hindu family. Joint hindu family business an affectionate business. Partnership is formed on the basis of an agreement between two or more persons to carry on business. Essays on business management, notes on business, articles on business development, list of definitions, class notes, study guides, presentations, research papers, project reports on business studies, latest techniques used for improving your business, acts, helpful notes, biographies of eminent business. Consider these key points to determine if starting or joining a family business is the right decision for you.
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