Page 2 - Home Assignment 4
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(b) Limited

                       (c) No liability
                       (d) All of the above


               HOME ASSGNMENT________


               SHORT QUESTIONS ANSWERS_______1MARK EACH

                   1.  Define Hindu undivided family.

                   2.  Who is Karta in HUF Business?
                   3.  What is the liability of Karta and coparceners in HUF Business?

                   4.  How the membership arises in HUF?

               3 ---4 MARK ANSWERS_____


               1. State any four characteristics of HUF Business.


               2. Explain three advantages of HUF Business.


               5---6 MARK ANSWERS______

                   1.  Explain the meaning of Joint Hindu Family Business with its  demerits.

                   2.  DhirubhaiChaurasiya operates a textile business. His family is joint and has
                       a lot of ancestoral property. All the 15 family members are a part of this

                       business.  He  is  the  eldest  male  member  in  the  family  so  he  heads  the
                       business.  He  is  liable  to  all  the  creditors  of  the  business  as  he  is  the

                       decision maker. Dhirubhai’s grandson has just born a few days ago and he
                       is also the member of the business.
                       (a) Which form of business is being undertaken by DhirubhaiChaurasiya ?

                       (b) Identify the features of this form of business based on the information
                       given.
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