Explain the types of partners.
Answers
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.dude
A partner can have different types of partners with different roles and liabilities and understanding of these types is important for clear understanding of their rights and responsibilities .
1) ACTIVE PARTNERS:
the partners actively participate in the day-to-day operations of the business are known as active partners or working partner .
2) SLEEPING PARTNERS:
those partner should not participate in the day to day activities of the business are known as sleeping or dormant partner search partner singly contribute the capital and share the profits and losses .
3) NOMINAL PARTNERS:
nominal partners allowed the firm to use their names as partner they invest in capital not do they participate in the day-to-day operations they are not entitled to save the properties of the form however there liable to third party for all the acts of the firm.
4) PARTNERS IN PROFIT:
a person who says the profits of the business without being liable for the losses is known as partners in profit this is applicable only to the minors Who admitted to the benefits of the firm and their liability is limited to their capital contribution .
5) PARTNER BY ESTOPPEL:
a person who behaves in the public in such a way as to given an impression that he or she is a partner of the firm is called partner by estoppel.
6) PARTNER BY HOLDING OUT:
partner in a partnership frim declares that a particular person is a partner of the firm and such a person does not disclaim it then he or she is a 'partner by holding out'.