Tag: organization of commerce and management

Questions Related to organization of commerce and management

Every partner is personally liable for the debts of the firm; in a joint family business only __________ is personally liable.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. Male member

  2. Karta

  3. Major male member

  4. Minor male member

Show answer
Correct Option: B
Explanation:

Hindu Joint family business are the type of business which are run by the members of a joint family under Hindu Succession Act, 1956 to achieve common goals. 

In Hindu Joint family business, Karta is the head of the family and manages everything in the business. Karta has the most power in a Hindu family business.

HUF is governed by __________.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. The Indian Partnership Act, $1932$

  2. Hindu Law

  3. The Companies Act, $2013$

  4. None of the above

Show answer
Correct Option: B
Explanation:

Hindu Joint family business are the type of business which are run by the members of a joint family under Hindu Succession Act, 1956 to achieve common goals. 

In a Hindu Undivided Family business only the _____ get a share in the business by virtue of their being part of the family.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. Female members

  2. Male members

  3. Both (a) & (b)

  4. Either (a) or (b)

Show answer
Correct Option: B
Explanation:

In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

In Hindu Undivided Family (HUF) from of business all the members of a Hindu undivided family own the business _______________.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. Individually

  2. Separately

  3. Jointly

  4. With society

Show answer
Correct Option: C
Explanation:

In Hindu Undivided Family(HUF) form of business all the members of a Hindu undivided family own the business jointly. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

Which of the following can be treated as advantage of HUF from of business?

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. Every co-parcener is assured a share in the profits irrespective of his contribution to the profits irrespective of his contribution to the successful running of the business.

  2. The karta enjoys full freedom in conducting the family business.

  3. A HUF business provides opportunity for the young members of the family to get the benefit of knowledge and experience of the elder members and also helps in inculcating virtues like discipline, self-sacrifice, tolerance etc.

  4. All of above

Show answer
Correct Option: D
Explanation:
In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. Following can be treated as advantage of HUF form of business:
a) Every co-parcener is assured a share in the profits irrespective of his contribution to the profits irrespective of his contribution to the successful running of the business.
b) The karta enjoys full freedom in conducting the family business.
c) A HUF business provides opportunity for the young members of the family to get the benefit of knowledge and experience of the elder members and also helps in inculcating virtues like discipline, self-sacrifice, tolerance etc.

In a HUF business, in the event of death of any of the co-parcener, his wife can claim share of profit.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. False

  2. True

  3. Partly true

  4. None of above

Show answer
Correct Option: B
Explanation:

In a HUF business, in the event of death of any of the coparcener, his wife can claim share of profit-this is  a true statement. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

In a HUF business all co-parceners have equal share in the profits of the business.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. False

  2. True

  3. Partly true

  4. None of above

Show answer
Correct Option: B
Explanation:

In a HUF business all co-parceners have equal share in the profits of the business- this is a true statement. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

In a HUF business, the liability of the karta is _______________.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. Limited to the extent of share of co-parceners

  2. Limited to the extent as may be determined by relatives

  3. Unlimited

  4. (a) or (b)

Show answer
Correct Option: C
Explanation:

In a HUF business, the liability of the karta is unlimited. The affairs of the business are managed by the head of the family, known as karta. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

The liability of each member of the HUF business is _____________.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. Limited to the extent of share of KART

  2. Limited to the extent of his share in the business

  3. Unlimited

  4. Limited to the extent as may be determined by relatives

Show answer
Correct Option: B
Explanation:

The liability of each member of the HUF business is limited to the extent of his share in the business. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

Which of the following can be treated as advantage of HUF form of business?

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. The liability of the co-parceners is limited, except for that of karta which makes the karta to manage the business in the most efficient manner.

  2. A HUF business is not affected by the insolvency or death of any member including that of karta.

  3. Both (a) and [b)

  4. (a)or(b)

Show answer
Correct Option: C
Explanation:

In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. Following can be treated as advantage of HUF form of business:

a) The liability of the co-parceners is limited, except for that of karta which makes the karta to manage the business in the most efficient manner.
b) A HUF business is not affected by the insolvency or death of any member including that of karta.