Business Studies, asked by Gauravsharma37, 1 year ago

ved has allowed shrey and gaurav for using his name for the sports equipment manufacturing unit recently promoted by them as partners.But , ved will not take active part in managing the firm and neither share its profit or losses.

1) will ved is considered as a partner in the firm? explain

2)also comment upon the kind of liability ved will have to assume under such circumstances.

Answers

Answered by Wafabhatt
2
Thank you for this question. Please find the answer below: 
Keeping in the view the above given statement; 
a. Yes, Ved can be considered as a preference partner, who only attains his share without terms of profit or losses. The business firm is bound to give him his share despite its loss or profit. 
b. Ved does not have any liabilities because he is not liable to the loss in the business firm. In case of bankruptcy, the business firm is bound to give his share with its assets. 
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