types of partner
Kinds of Partners:
The following are the various kinds of partners. 1. General partners 2. Special partners3. Others partners
1. General Partners:
Partners who take active part ion the business of the firm are known, as general partners. The liability of such partners is unlimited in the firm. These partners are of two types.
(a) Active Partner:
A general partner who takes active part in the day-to-day affairs of the business is known as Active Partner. It is also termed as working or managing partner.
(b) Dormant or Sleeping partner:
He does not take any part in day-to-day affairs of the business. He contributes his capital and shares the profits and losses of the business. He is bound by the acts of the other partners. He does not directing involved in the day to day activity of the business.
2. Special Partners:
These partners are found in limited partnership only. They do not have unlimited liability. Their liability is limited up to the amount of capital invested by them. They do not take part in the management of the affairs of the business, but they have the right to inspect the books of the firm.
3. Other Type of Partners:
These are as follows:
(a) Nominal Partner:
He is that partner who neither invests capital nor does participate in profits and losses of the film as partner. He lends his name to enhance the goodwill of the concern.
He does not have any contractual relationship with other partners. But he is equally responsible to the third parties for the acts of the firm.
(b) Partners in profits only:
He is that partner who shares the profit of the firm, but is not liable for losses. But he is equally liable like other partners to the third parties for the acts of the firm. He is not allowed to take part in day to day management of the business.
(c) Partner by estoppels’ or Holding out:
Indian Partnership Act, 1932 defines such a partner as a person, who by words, written or spoken represents himself or knowingly permits himself
The following are the various kinds of partners. 1. General partners 2. Special partners3. Others partners
1. General Partners:
Partners who take active part ion the business of the firm are known, as general partners. The liability of such partners is unlimited in the firm. These partners are of two types.
(a) Active Partner:
A general partner who takes active part in the day-to-day affairs of the business is known as Active Partner. It is also termed as working or managing partner.
(b) Dormant or Sleeping partner:
He does not take any part in day-to-day affairs of the business. He contributes his capital and shares the profits and losses of the business. He is bound by the acts of the other partners. He does not directing involved in the day to day activity of the business.
2. Special Partners:
These partners are found in limited partnership only. They do not have unlimited liability. Their liability is limited up to the amount of capital invested by them. They do not take part in the management of the affairs of the business, but they have the right to inspect the books of the firm.
3. Other Type of Partners:
These are as follows:
(a) Nominal Partner:
He is that partner who neither invests capital nor does participate in profits and losses of the film as partner. He lends his name to enhance the goodwill of the concern.
He does not have any contractual relationship with other partners. But he is equally responsible to the third parties for the acts of the firm.
(b) Partners in profits only:
He is that partner who shares the profit of the firm, but is not liable for losses. But he is equally liable like other partners to the third parties for the acts of the firm. He is not allowed to take part in day to day management of the business.
(c) Partner by estoppels’ or Holding out:
Indian Partnership Act, 1932 defines such a partner as a person, who by words, written or spoken represents himself or knowingly permits himself