Mr David is a well-known layer. He has joined a couple of firms for known facts and reasons. He is a partner of a big law firm in Mumbai. But he does not add capital, nor does he participate in the management. What kind of partner is he with the big law firm?

Active partner

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Sleeping partner

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Secret partners

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Nominal partners

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Solution

The correct option is D
Nominal partners

Nominal partners do not add capital, participate in the management nor do they receive any profits.

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Similar questions

Q. 'A', 'B', 'C', 'D' and 'V are partners in partnership firm. The firm has different types of partners. Mr. A has contributed capital and participates in the management of firm. He shares profits and losses and is liable to an unlimited extent to the creditors of the firm.
Mr. B has contributed capital and shares its profits and losses. He also has unlimited liability but he does not take part in day to day activities of business. Association of Mr. C is not known to the general public but in all other respects he is like an active partner. Mr. D has allowed the firm to use his name as he enjoys good reputation among clients but he does not either contribute capital or take part in the management.
Master 'E', 15 years of age is entitled to the benefits of partnership with mutual consent of all their members. He is not eligible to take part in management of firm and shares only profits and not losses of the firm.
(i) How many partners do the firm has?
(ii) Who is the active partner and what is the nature of his liability in the firm?
(iii) Who is the sleeping partner in the firm and what is the nature of his liability?
(iv) What kind of partner is Mr.0 and what kind of liability does he have in the firm?
(v) How does the partnership relationship of Mr. C differs from Mr. D ? How do they differ in their liability?
(vi) Is Mast. E a legal partner? Can be held liable for the liability of the firm?

Mr. Gupta is a partner to a firm. He has been adding capital, taking part in decisions, receives maximum shares. What kind of partner is he in the company?

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

(a) Active partner

(b) Sleeping partner

(d) Secret partner

Q. A is admitted as a nominal partner in the firm of P, Q and R. He can become a partner by ______________________.

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

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Mr David is a well-known layer. He has joined a couple of firms for known facts and reasons. He is a partner of a big law firm in Mumbai. But he does not add capital, nor does he participate in the management. What kind of partner is he with the big law firm?

The correct option is D Nominal partners Nominal partners do not add capital, participate in the management nor do they receive any profits.

The correct option is D
Nominal partners

Nominal partners do not add capital, participate in the management nor do they receive any profits.