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Question

A partner who has not entered into a partnership agreement and conducts or represents himself as a partner in a firm is called _____________.

A
Sleeping partner
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B
Working partner
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C
Sub-partner
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D
Partner by holding out
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Solution

The correct option is D Partner by holding out
According to the Partnership Act, a partner by holding out refers to the partner who verbally or in written or through some conduct represents himself or knowingly permits himself to be represented as a partner in a firm who has not yet entered into the partnership agreement to take the advantage of the goodwill of the firm.

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