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Sr.
No.
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Basis of Difference
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Proprietorship
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Joint Hindu Family Firm
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1.
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Meaning
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It is a form of commercial
organization which is owned and managed by a single person.
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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.
|
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2.
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Membership
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There cannot be more than one owner.
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There is no maximum limit on
membership.
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3.
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Ownership
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The business assets and properties are
owned by the proprietors.
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All the family members are joint
owners of business properties.
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4.
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Liability
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The liability of sole trader is
unlimited.
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Karta’s liability is unlimited.
Co-parcener’s liability is limited.
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5.
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Financial Resources
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The financial resources are available.
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The funds are more than that of a
proprietor.
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6.
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Stability
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It lacks stability since the existence
of sole trading concern depends upon the survival of the sole trader.
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It is comparatively more stable since
after the death of Karta, the next senior family member takes over Karta’s
passion and run the business.
|
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7.
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Profit& Loss
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All the profit of the concerned belong
to the sole trader and all losses are to be borne by him.
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The profit and losses are shared by
all the co-parceners
|
Proprietorship Joint Hindu Family Firm
