Kinds Of Partners

KINDS OF PARTNERS 

Active partner These are the partners who take active part in the business. They invest Capital and share in profit or loss. They have unlimited liability for debts of the firms in their profit sharing ratio. They have participation in decision – making and management.

Sleeping Partner/ Silent/ Dormant partners These are the partners who invest capital but do not take active part in management. They have all rights and liabilities, which an active partner has. They also share in profit or loss.

Secret Partners A secret partner is one who is not known to the public as a partner. He has capital in the business, enjoys profits and share losses. He may participate in management and decision – making.

Nominal Partners He is the person who is not a real partner, but to get the general public he is declared as a partner. He has no investment in the business. He does not share in profit or loss and is not responsible for the debt of the business, but is responsible for credit investment.

Minor Partners They are under 21. They have investment with a profit sharing ratio. But their liability is limited to their business investment. They are not allowed to take part in the management of the business, but they can through their attorney. Check the books of accounts.

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