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Question -

Distinguish between a Joint Hindu family business and partnership.



Answer -

Difference between Joint Hindu family business and Partnership

Basis of difference

Joint Hindu Family Business

Partnership

Governance

Governed by the Hindu law.

Governed by Partnership Act, 1932.

Liability

The head has unlimited liability, while the liabilities of other members are limited to the extent of their share in the business.

All the partners have unlimited liability.

Decision making and control

The karta is responsible for the management and control of the business.

All the partners jointly manage and control the firm.

Number of members

Minimum: 2

Maximum: No limit

Minimum: 2

Maximum: 10 for the banking business and 20 for other businesses

Minor

Minors can be members.

Minors cannot be members.

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