Question

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

(a) Active partner

(b) Sleeping partner

(c) Nominal partner

(d) Secret partner

Answer 1

A secret partner in a firm is a partner whose association with the firm is unknown to the general public. Secret partners do not contribute any capital to the business but have participation rights in the management of the partnership firm. They are also entitled to a share in the profits and losses of the business and have unlimited liabilities.

Hence, the correct answer is option (d).