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Meaning of Retirement

A partner who...

Question

A partner who is entitled to a portion of the profits and is responsible for a share of the losses but does not participate in a company's active business is called

A

Dormant partner

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B

Partner by Estoppel

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C

Outgoing partner

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D

Limited partner

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Solution

The correct option is A Dormant partner
Dormant partner

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Similar questions

Q. A partner who is entitled to share in the profits of a partnership firm without being liable to share the losses, is called a _______.

Q. A partner who contributed capital in the Finn but does not actively participate in the working of the business is called ______________.

Q. How you will classify partner who invest money into the business of the firm, actively participate in the functioning and management of the business and share its profits or losses?

Q. How you will classify partner who invest money in the firm's business and take their share of profits but do not participate in the functioning and management of the business?

Q. 'A', 'B', 'C', 'D' and 'V are partners in partnership firm. The firm has different types of partners. Mr. A has contributed capital and participates in the management of firm. He shares profits and losses and is liable to an unlimited extent to the creditors of the firm.
Mr. B has contributed capital and shares its profits and losses. He also has unlimited liability but he does not take part in day to day activities of business. Association of Mr. C is not known to the general public but in all other respects he is like an active partner. Mr. D has allowed the firm to use his name as he enjoys good reputation among clients but he does not either contribute capital or take part in the management.
Master 'E', 15 years of age is entitled to the benefits of partnership with mutual consent of all their members. He is not eligible to take part in management of firm and shares only profits and not losses of the firm.
(i) How many partners do the firm has?
(ii) Who is the active partner and what is the nature of his liability in the firm?
(iii) Who is the sleeping partner in the firm and what is the nature of his liability?
(iv) What kind of partner is Mr.0 and what kind of liability does he have in the firm?
(v) How does the partnership relationship of Mr. C differs from Mr. D ? How do they differ in their liability?
(vi) Is Mast. E a legal partner? Can be held liable for the liability of the firm?

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