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Sr.
No.
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Basis of Difference
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Partnership Firm
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Joint Hindu Family Firm
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1.
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Meaning
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In this form of business organization
two or more persons come together to undertake a business activity and share
profits.
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It is a form of commercial organization.
The ancestral (family) business is conducted by the family
members of Joint Hindu Family. is created by the operation of Hindu Law.
|
|
2.
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Creation
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Partnership firm emerges out of
contract between the partners.
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Joint Hindu Family firm is created by
the operation of Hindu Law.
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3.
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Membership
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There can be a minimum of 2 partners
and a maximum of 10 partners in banking business and 20 in non-banking
business.
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There is no maximum limit on
membership. Membership keeps on changing depends upon the birth and death in
the family.
|
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4.
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Management
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All partners in partnership have equal
managerial rights. The business is jointly managed by all the partners.
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Karta is the key manager of business
who may be assisted by co-parceners to a limited extent.
|
|
5.
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Minor members
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A minor member can be admitted to the
benefits of partnership with the consent of all the partners.
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A male minor becomes a member merely
by his birth.
|
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6.
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Regulating
Law
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It is governed by the Indian Partnership
Act, 1932.
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It is governed by the Hindu Law.
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7.
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Liability of Members
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The liability of all the partners is
unlimited.
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Only Karta’s liability is unlimited,
co-parcener’s liability is limited.
|
Partnership Firm Joint Hindu Family Firm
