Which of the following is a specific form of business organization where membership is by birth?a)Hindu Undivided Familyb)Sole Proprietorshipc)Cooperative Societiesd)Government CompanyCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Option A is correct because it is one of the featu

re of the HUF that even a minor member of that family can be the

Answer

Hindu undivided family is known as joint hindu fam

ily..... this business is managed

Answer

Okk tnxxxx

Answer

Hindu Undivided Family (HUF) is a specific form of business organization where membership is by birth. It is a unique concept in India that allows families to come together and operate a business as a single entity.

Below are the key points explaining why HUF is the correct answer:

1. Definition:
HUF is a business organization where the members are all part of the same family and are related to each other through birth. The membership in an HUF is determined by the person's status as a member of a Hindu joint family.

2. Structure:
An HUF consists of the head of the family, known as the Karta, and other family members called coparceners. The Karta manages the affairs of the business, while the coparceners have equal rights in the property and business of the HUF.

3. Birthright Membership:
Membership in an HUF is automatic and determined by birth. When a person is born into a Hindu joint family, they become a member of the HUF by default. This means that the ownership and management of the business are passed down through generations.

4. Succession:
In an HUF, the property and business are inherited by the coparceners based on the principles of Hindu succession. The eldest male member of the family becomes the Karta upon the death of the previous Karta, and the other coparceners become joint owners of the property and business.

5. Separate Legal Entity:
HUF is considered a separate legal entity for the purpose of taxation and other legal matters. It has its own PAN (Permanent Account Number) and files separate tax returns. The income earned by the HUF is taxed separately from the individual members.

6. Limited Liability:
The liability of the members in an HUF is limited to the extent of their share in the property and business. This means that the personal assets of the members are protected in case of any business liabilities.

In conclusion, Hindu Undivided Family (HUF) is a specific form of business organization where membership is by birth. It allows families to come together and operate a business as a single entity, with automatic membership determined by birth. The HUF has its own legal entity, limited liability, and follows the principles of Hindu succession for the transfer of ownership.

Answer

Hindu undivided family is a family which is carrying on a traditional business and every member has corporated in this business and because it is a family business every member of family becomes the member of business

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