Tag: ownership structures - sole proprietorship and joint hindu family business

Questions Related to ownership structures - sole proprietorship and joint hindu family business

A HUF cannot enter into partnership agreement with others.

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. Partly false

  2. False

  3. Partly true

  4. True

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Correct Option: B

Karta is a person with limited powers, but, within the ambit of his sphere, he possesses such vast powers as are possessed by none else.

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. Partly false

  2. False

  3. Partly true

  4. True

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Correct Option: D

Which of the following is an advantage of HUF?

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. Favourable Credit Standing

  2. Greater Management Ability

  3. Profit Incentive

  4. None of the above

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Correct Option: D

What is the maximum strength of HUF?

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. $20$

  2. $10$

  3. $50$

  4. No limit

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Correct Option: D

Increase in the number of working women and the rise in no family households are examples of _______________.

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 geographic shifts in population.

  2. the changing family.

  3. the changing age structure of the population.

  4. a better-educated and more white-collar population

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Correct Option: B

Karta in HUF is _______ of his 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. owner

  2. representative

  3. oldest member

  4. none of the above

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Correct Option: C

The head of the Joint Hindu Family business is called ________.

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. partner

  2. manager

  3. karta

  4. member

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Correct Option: A

A and B are joint owner of a house. They rent it out of C and divide the net rent equally. A & B are ________.

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. Partners

  2. Co-owners

  3. Principal & agent

  4. Consignor & Consignee

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Correct Option: B
Explanation:

Co-ownership refers to the division of ownership of something into two or more heads and working some business out of it to achieve common goals. This act can be passed through an agreement between the co-owners or even it can be done through the operation of law which will be bound on all the co-owners.

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

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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

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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.