Question

XYZ partnership firm is a partnership firm between A and B. C posed that he is a partner in XYZ and earned profits form the market. C will be regarded as ______.

• A. holding out partner
• B. dormant partner
• C. nominal partner
• D. none of the above

Answer 1

The correct option is D none of the above

C will be regarded as partner in profit . A partner in profit is a partner who shares in the profit only without being liable of the losses. He contributes capital to the firm but does not take part in the management of the business . He is liable to the third parties like other partners . Such a partner is generally inactive but associated with his money and goodwill.