Define sleeping and active partners......
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Sleeping Partners : Some partners provide only the finance, but do not take part in the running of the business. Such partners are called sleeping partners.
Active Partners : Active partner is that who not only invests capital but looks after the activities of the business. Active partner always receives profits and a fixed salary for managing the business.
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A sleeping partner is an individual whose involvement in a partnership is limited to providing capital to the business.
An active partner is an invested person who is involved in the daily operations of the partnership.
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