A partner who lends only his name to the firm is called as ________ partner. (Fill in the blank by choosing correct option)
a) partner in profits only
b) partner by estoppel
c) nominal
d) minor.
Answers
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IT IS KNOWN AS NOMINAL ACCOUNT
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0
Answer:
The correct answer to the given question is option (c) nominal.
Explanation:
A nominal partner doesn't have any significant interest in the partnership. He neither takes shares the profits of the company nor he contributes any kind of capital.
He simply lends his name to the company and becomes liable to third parties just like any other partner of the company will be liable for the act done by other partners.
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