Question

Explain the types of partners.

Answer 1

Answer:

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The types of Partners are as follows :-

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•Active or working partner :-

Such a partner contributes capitals and also takes part in the in the management of the firm or company.He bears an unlimited liability for the firm's debt.

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Sleeping or Dormant Partner :-

A sleeping or dormant partner simply contributes capital.He does not take part in the management of the firm's business.

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Secret Partner :-

This type of partner contributes capital and takes and active part in the management of the firm's business.He shares his profit and losses of the firm and his liability is unlimited.

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Limited Partner :-

The liability of such a partner is limited to the extent of his shares in the capital expenditure and profits of the firm.

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