A partner who never takes active part in the conduct of the business of the firm, is known as _________________.

Nominal Partner

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Active Partner

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Sleeping or dorment Partner

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Sub-Partner

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Solution

The correct option is D Sleeping or dorment Partner
In a partnership firm, a partner who is entitled to share profit and losses but does not take part in the management or operations of the business is called a silent or sleeping partner. Such a partner provides his share of capital only as an investment with a motive to earn profit/return.

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Similar questions

A partner whose association with the firm is unknown to the general public is called

(a) Active partner

(b) Sleeping partner

(d) Secret partner

A partner who contributes capital but does not take part in the business management of a firm.

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