Question

Select the most appropriate alternative from those given below and rewrite the statement.

A partner who lends only his name to the firm is called as__________________ partner.
a) partner in profits only
b) partner by estoppel
c) nominal
d) minor.

Answer 1

A partner who lends only his name to the firm is called as nominal partner.
Explanation: A partner who merely lends his name to the firm is regarded as a nominal partner. He neither invests in the business nor takes active part in it. But he is important for building up a good reputation for the firm.