Distinguish Between – Proprietorship and Joint Hindu Family Firm

Distinguish Between – Proprietorship and Joint Hindu Family Firm

Organization of Commerce and Management – Notes,  & Distinguish Between – according to the New Textbook for HSC – Difference between Proprietorship and Joint Hindu Family Firm.

Sr.NoBasis of DifferenceProprietorshipJoint Hindu Family Firm
1.MeaningIts a commercial organization which is owned & managed by single personIts a commercial organization . The ancestral business is conducted by joint Hindu family
2.MembershipNot more then single ownerNo limit on membership
3.OwnershipBusiness assets and properties are owned by the proprietorAll the family members are joint owners
4.LiabilityThe liability of sole trade is unlimitedKarta’s liability is unlimited
5.Financial ResourcesFinancial resources are availableFund are more than that of a proprietor
6.StabilityLack of stability since the existence of sole trading concern depends upon the survival of the sole traderComparatively more stable since after the death of karta, the next senior family take overs and continues business activities
7.Profit and lossesAll profit and losses are concerned belong to sole trader born by himThe profit and losses are shared by all the co-parceners

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