Describe the following :
(a) Sleeping partner
(b) Secret partner
(c) Nominal partner
(d) Active partner
Describe the following :
(a) Sleeping partner
(b) Secret partner
(c) Nominal partner
(d) Active partner
(a) Sleeping Partner : A partner who contributes capital in the firm but does not take active part in the management of the business is known as sleeping partners. However, he has the same duties, rights, liability (unlimited) and status as enjoyed by active partners.
(b) Secret Partner : A partner who apparently does not appear to be a partner but secretly manages the affairs of the business and has interest in it, is called is a secret partner. He also has unlimited liability.
(c) Nominal Partner : If a person neither contributes capital nor shares, profits, do not participate in the management of a firm but allows his credit and name to be used by the firm is known as nominal partner.
(d) Active Partner : A partner who actively participates in the day-to-day conduct of the firm's business are known as active or actual partners. Such a partner acts as an agent of the firm and bears an unlimited liability.
(a) Sleeping Partner : A partner who contributes capital in the firm but does not take active part in the management of the business is known as sleeping partners. However, he has the same duties, rights, liability (unlimited) and status as enjoyed by active partners.
(b) Secret Partner : A partner who apparently does not appear to be a partner but secretly manages the affairs of the business and has interest in it, is called is a secret partner. He also has unlimited liability.
(c) Nominal Partner : If a person neither contributes capital nor shares, profits, do not participate in the management of a firm but allows his credit and name to be used by the firm is known as nominal partner.
(d) Active Partner : A partner who actively participates in the day-to-day conduct of the firm's business are known as active or actual partners. Such a partner acts as an agent of the firm and bears an unlimited liability.
