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Introduction to Dissolution

Which of the ...

Question

Which of the following partner can retire without giving public notice?

A

Active partner

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B

Sleeping or dormant partner

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C

Nominal partner

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D

Partner in profits only

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Solution

The correct option is B Sleeping or dormant partner
According to the Partnership Act, Sleeping or dormant partner are the partners who invest their money into the business and share the profit or losses but they do not participate in the functioning and management of the business. These partners can retire without giving a public notice to other partners.

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