Write short notes on the following. Type of partners

ANSWER:

There are various types of partners in a partnership firm. They are:

i. Active partners: They contribute capital to the business and share profits and losses; they are also actively involved in the working of the business.

ii. Sleeping partners: They contribute capital to the business and share profits and losses, but they are not involved in the working of the business.

iii. Nominal partners: They only lend their names to the business. They neither contribute any capital to the business nor share profits or losses.

iv. Minor partners: Minors partners are members below 18 years of age who are made partners in the business with the mutual consent of all partners. They share only profits and have no liability.

v. Partners in profits only: They only share the profits of the business and do not take part in the working of the business.

vi. Limited partners: The liability of these partners is limited to the extent of their investment in the business. They do not take part in the management of the business.

vii. Partners by holding out: They are not partners in the firm, but they represent themselves as partners by their actions or conduct.

viii. Secret partners: Their association with the firm is unknown to the general public.