How you will classify partner who do not invest or participate in the management of the firm but only give their name to the business or firm?
Active or working partner
Sleeping or dormant partner
Nominal partner
Partner in profits only
A
Active or working partner
B
Nominal partner
C
Sleeping or dormant partner
D
Partner in profits only
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Solution
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A partnership
basically refers to the contract between two or more people who have agreed to
carry on certain business in order to achieve common goals.
According to the
Partnership Act, Nominal partners are the partners who do not invest their
money into the business and have no share in the profit or losses but they just give their name as the partner for their goodwill in the business.
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