Question

Explain the different types of partners. Briefly 6, 4 explain the duties of a partner.

Answer 1

Answer:

Apartnership is when two or more people work together and share the profits from the business or profession. However, one must not always assume that all partners participate in the work or profits or even liabilities of the firm equally. In fact, there are various types of partners based on the extent of their liability, or their participation in the firm – like an active partner or dormant partner etc. Let us take a look.

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.