The two merits of Joint Hindu Family business are
(i) Easy to Form and Dissolve: A Joint Hindu Family business can easily be started and dissolved, as no legal formalities have to be completed before starting or closing such business.
(ii) Limited Liability: The liability of all the members except Karta in Joint Hindu Family business is limited to the extent of their share in the family property. In case of loss no one can have claim over their personal property.
The two demerits of Joint Hindu Family business are
(i) Limited Managerial Ability: The Joint Hindu Family business is managed by the senior-most male member i.e., Karta. An individual has limited ability to manage. He cannot be an expert in-all the areas of business. As a result there is lack of specialisation.
(ii) Unlimited Liability :The liability of Karta is unlimited which means in case of loss the Karta will not only lose his business property, but he will have to sell his personal’property to pay back the debts of the business.