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.No | Basis of Difference | Proprietorship | Joint Hindu Family Firm |
| 1. | Meaning | Its a commercial organization which is owned & managed by single person | Its a commercial organization . The ancestral business is conducted by joint Hindu family |
| 2. | Membership | Not more then single owner | No limit on membership |
| 3. | Ownership | Business assets and properties are owned by the proprietor | All the family members are joint owners |
| 4. | Liability | The liability of sole trade is unlimited | Karta’s liability is unlimited |
| 5. | Financial Resources | Financial resources are available | Fund are more than that of a proprietor |
| 6. | Stability | Lack of stability since the existence of sole trading concern depends upon the survival of the sole trader | Comparatively more stable since after the death of karta, the next senior family take overs and continues business activities |
| 7. | Profit and losses | All profit and losses are concerned belong to sole trader born by him | The profit and losses are shared by all the co-parceners |