Question

A partner who does not take active part in managing the business, nor shares its profit or losses but is liable, like other partners, to the third parties, for the repayments of the firm’s debts is known as
(a) Active partner
(b) Sleeping partner
(c) Nominal partner
(d) Secret partner​

Answer 1

Nominal partner

Explanation:

A nominal partner is one who allows the use of his/her name by a firm, but does not contribute to its capital. He/she does not take active part in managing the firm, does not share its profit or losses but is liable, like other partners, to the third parties, for the repayments of the firms debts.