Q.Suresh started a business on his own. His father and brother helping in his business. What kind of business organisation is this and give a note on it.

A business carried on by the members of one Hindu family under the control of the family head (Karta) is a Hindu Undivided Family (HUF) or Joint Hindu Family business.

Since Suresh runs the business with his father and brother helping him — all members of the same family — the organisation is a Hindu Undivided Family (HUF) business, also called Joint Hindu Family business. Its main features are:

1. Membership by birth — a person becomes a member (coparcener) simply by being born into the family; no agreement is needed.
2. Management by the Karta — the eldest/senior member, called the Karta, manages and controls the business and takes all decisions.
3. Liability — the Karta's liability is unlimited, while the liability of the other members is limited to their share in the family property. …