Lesson 1, Topic 1 of0

10.3 Types of partnerships

  1. General partners

All the partners who are in the partnership known as general partners.

  1. Active partners

These are those partners who take active part in the management and help in the formulation of policies. These are also known as working or managing partners.

  1. Sleeping or silent partners

Partners, who just invest money and do not take any part in the management, are known as sleeping or silent partners. Such members after contributing their share of capital wake up only either to share the profits or to liquidate the business.

  1. Nominal partners

Partners, who do not invest money and do not take part in the management, but they lend their reputed name for the company’s

Reputation are known as nominal partners.

  1. Secret partners

These partners take part in the management secretly but nowhere their names appear.

  1. Minor partners

Minor partners are those whose age are below 18 years and associated with the business. Such partners can be allowed only with the consent of other partners.