Question

The court may not order dissolution of a firm on permanent incapacity of a ______________ .

• A. Dormant partner
• B. Active partner
• C. Managing partner
• D. Senior partner

Answer 1

Answer: (A)

Dormant partner

Dormant partner is a partner who takes no share in the active business of partnership but share profits or losses. Permanent incapacity of a dormant partner does not have much effect on partnership because dormant partner does not manage its working. But permanent incapacity of active partner or managing partner may stop the working of business. So the court may not order for dissolution on permanent incapacity of a dormant partner.