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 partner in a PARTNERSHIP who contributes capital to finance the business but takes no active part in managing the company. Sleeping partners still retain unlimited liability for the debts of the partnership alongside active partners.
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