Q.Membership of a Hindu Undivided Family business is acquired:

This question tests the single feature that most sharply distinguishes HUF business from every other form of organisation covered in this chapter. …

Unlike a partnership, which is formed only by agreement between the persons concerned, an HUF business requires no agreement, no admission process, and no purchase of a share at all. A person becomes a member of the joint family — and thereby acquires an interest in its business — simply by being born into that family. Option (a) describes how a partnership is formed, (c) describes how a company's shareholders acquire membership, and (d) describes registration of a firm, which is an entirely separate, optional legal step under t …

Confusing HUF's by-birth membership with a partnership's agreement-based membership — the two forms are contrasted precisely on this point, so …