Question

Define sleeping and active partners.

Answer 1

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.

Answer 2

Explanation:

Sleeping partners = They invest finances in a firm but do not have active participation in running them .

Active partners = They not only invests money in the firm but also have an active participation in running them .