Question

Elucidate the different type of Partners.

Answer 1

Explanation:

Types of Partners in a Business Partnership. Partners are of different kinds in a business partnership. They are as working partner, sleeping partner, nominal partner, partner by estoppel, limited partner, secret partner, partner by holding out, sub-partner, partner in profit. They are briefly explained below.

Answer 2

TYPES OF PARTNERS

• Active partner :- The active partner participate in the management of the firm. His liability is unlimited and he contributes capital in the firm. He gets share in the profit or loss of the company.
• Secret partner :- Secret partner is one whose Association or relation with the firm is not known to outsiders. He contributes capital, participates actively in the management, his liability is also unlimited.
• Sleeping or dormant partner :- The partner who does not participate in the management of the firm. These partners are bound by the activities of other active partners. tmThese partners contribute capital and get share in the profit or loss of the firm. The liability of sleeping partner is unlimited.