Types of Partners in Business

What is an active partner?

• A partner who only invests money

• A partner who takes part in daily operations

• A partner who is not known to outsiders

• A partner who shares profits only

Which type of partner does not participate in the management of the business?

• Active Partner

• Secret Partner

• Dormant Partner

• Nominal Partner

What is a nominal partner?

• A partner who has limited liability

• A partner who is actively involved in management

• A partner who only lends their name to the business

• A partner who shares profits and losses

Which type of partner is known for having unlimited liability?

• Active Partner

• Partner in Profits Only

• Dormant Partner

• Partner with Limited Liability

What defines a minor as a partner?

• A partner who attained 18 years of age

• A person under 18 years of age

• A partner with limited liability

• A partner who only shares profits

What is a sub-partner?

• A partner who has limited liability

• A partner who shares profits with a third party

• A partner who is not known to outsiders

• A partner who only invests money

Which type of partnership allows for limited liability?

• Secret Partnership

• Limited Liability Partnership

• General Partnership

• Dormant Partnership

What is a quasi partner?

• A partner who has retired but retains capital in the firm

• A partner who is not involved in management

• A partner who only shares profits

• A partner who is known to outsiders

In a general partnership, what is the nature of partners' rights?

• Rights based on capital contribution

• No rights for dormant partners

• Limited rights for some partners

• Equal rights among all partners

What is a partnership at will?

• A partnership formed for a specific period

• A partnership that can be dissolved at any time

• A partnership with limited partners

• A partnership that requires a written agreement