Question 14 Marks
Joint Hindu Family Business and Joint Stock Company.
Answer
View full question & answer→| Basis | Joint Hindu Family Business (JHFB) | Joint Stock Company |
| 1. Meaning | It is a business organization owned and managed by members of the Joint Hindu Family. | It is an association of persons formed under the Companies Act, 2013 to run a business. |
| 2. Number of members | There is no limit on the minimum and maximum number of members. | Private Company minimum 2 members and maximum 200 members. Public Company minimum 7 members and maximum unlimited. |
| 3. Registration | Registration is not necessary. | Registration is compulsory under the Indian Companies Act, 2013. |
| 4. Liability | Karta has unlimited liability while Co-parceners have limited liability. | The liability of all members is limited. |
| 5. Stability | It has no stability. Death or insolvency of members may affect stability. | It has a stable business. Death or insolvency of a member will not affect the stability. |
| 6. Capital | Comparatively, it requires limited capital. | It requires a huge amount of capital. |
| 7. Secrecy | It maintains maximum secrecy. | It maintains less business secrecy. |
| 8. Management | Karta is responsible for the management of the business. | The Board of Directors is responsible for the management of the Joint Stock company. |
| 9. Government Control | There is less government control. | There is more government control on working of the Joint Stock company. |