question_answer 23)

Distinguish between a Joint Hindu family business and partnership.

Answer:

 

Basis of Comparison	Partnership	Joint Hindu Family Business
Formation	Easy formation with an agreement between partners.	Easy formation with less legal formalities than partnership.
Registration Requirement	Registration is optional.	Exemption from registration.3
Members	Minimum members should be 2 and maximum 10 for banking and 20 for others.	At least two persons for division of family property with no maximum limit of members.
Capital contribution	Limited but more than that can be raised in case of sole proprietorship.	The capital contribution comes from ancestral property.
Liability	Liability of members is unlimited and joint.	Liability is unlimited only for Karta while it is limited for other members.
Control and Management	Partners take decisions jointly and content of all partners is needed	Karta takes decisions which are binding on other members.
Continuity	Stable but affected by status of partners.	Stable business, continues even in Karta dies through succession in family.