Q.Explain any three characteristics of Hindu Undivided Family (HUF).

HUF business is created by Hindu Law, managed by the Karta, with unlimited liability for the Karta and limited liability for other coparceners.

In the Tamil Nadu HSC Class-11 Commerce syllabus, the Hindu Undivided Family (HUF) is a distinct form of business organisation governed by Hindu Law.

Three characteristics:

1. Governed by Hindu Law / membership by birth: A HUF business is created by the operation of Hindu Law and not by any agreement between members. A person becomes a member (coparcener) simply by being born into the family.
2. Management by the Karta: The business is managed and controlled by the senior-most (eldest) male member called the Karta. The other members are called coparceners and generally do not interfere in management. The Karta's decisions bind the family. …