A painter who provides only capital to the firm is called as nominal partner. (State True or False)
Answers
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Question -
A painter who provides only capital to the firm is called as nominal partner. (State True or False)
Answer - true
Hope this helps you
Answer:
True
Explanation:
As we know that, Partnership firm is a form of business organization which has more than one owners. It is owned and managed by more than one person. All the owners share profits and losses and their liability is unlimited. The owners are called as partners
Nominal Partner: One who just lends his name to the firm. He neither contributes the capital nor takes part in day to day management of the business.
A “nominal partner” is not a macroeconomic term but rather a business term.
So we can say that, A painter who provides only capital to the firm is called as nominal partner is a true statement.