Question

Describe Sleeping Partner.

Answer 1

Hey mate!!

here's your answer...

$\huge\sf\purple{Sleeping\: partner}$

»A sleeping partner is a person who provides some of the capital for a business but who does not take an active part in managing the business.

›Someone who is in reality a partner but whose name does not appear in any ways as a partner. Nor does he take part in the management of the subject of the partnership. Hence, he has no authority to act on behalf of the business.

While the profit is being distributed, the salary part has to be met first, any profit remaining after this can be divided on the basis of the ratio of the partner's investment.

$<marquee>★★Hope it will be helpful for you ☺️★★$

Answer 2

Answer:

Sleeping or dormant partner:

A sleeping partner is a partner who 'sleeps', that is, he does not take active part in the management of the business. Such a partner only contributes to the share capital of the firm, is bound by the activities of other partners, and shares the profits and losses of the business.