Dinesh becomes a partner in the firm by agreement but never takes active part in the conduct of the business of the firm, in this situation he is known as a ________.

Dormant Partner

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Nominal Partner

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Sub-partner

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Ostensible Partner

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Solution

The correct option is C Dormant Partner
Dinesh becomes a partner in the firm by agreement but never takes active part in the conduct of the business of the firm, in this situation he is known as a Dormant Partner because these type of Partners are the one who contributes only capital to the business but does not take part in its management. They are called dormant partners or financing partners.
Thus the correct answer is A.

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

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