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Question

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

A
partner of profits only
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B
sleeping partner
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C
active partner
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D
dummy partner
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Solution

The correct option is A partner of profits only
A person who becomes a partner for sharing profits only is known as a partner in profits.
He contributes capital to the firm but does not take part in the management of the business . He is liable to the third parties like other partners.

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