Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
493 views
in Business Studies by (43.3k points)
closed by

Distinguish between the following

Joint Hindu Family Firm and Joint Stock Company.

1 Answer

+1 vote
by (43.0k points)
selected by
 
Best answer
Joint Hindu Family Firm Joint Stock Company
(1) Meaning In Joint Hindu Family Firm, the Joint Hindu Family conducts business according to Hindu Laws. Joint Stock Company is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by Board of Directors.
(2) Number of Members Membership of the firm depends upon the birth and death in the family. There is no limit on membership. Private companyMinimum – 2 Maximum – 200 Public companyMinimum – 7 Maximum – No limit
(3) Registration Registration is not required Registration is compulsory.
(4) Liability Karta has unlimited liability and Co-parceners have limited liability. The liability of shareholders is limited upto the extent of unpaid amount on shares by them.
(5) Capital The whole of ancestral property used as capital. The company has huge capital.
(6) Secrecy Secrecy can be maintained within the family. Books of accounts have to be published. Business secrecy cannot be maintained.
(7) Management Karta manages the business and he is assisted by coparceners. Board of Directors manages the Joint Stock company.
(8) Government Control There is limited government interference. There is strict government control.
(9) Act Joint Hindu Family Firms are governed by the Hindu Succession Act, 1956. Joint Stock Companies are governed by Indian Companies Act, 2013.
(10) Formation It is comparatively easy to form. Formation of a Joint Stock Company is difficult, costly and timeconsuming.
(11) Legal Existence A Joint Hindu Family firm does not have a separate legal existence independent of its members. A Joint Stock Company has a separate legal existence. It is distinct from its members.
(12) Minor Member Minors can become a member of the firm. Minors cannot become a member of the company.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...