Q.5 Discusses the various kinds of a partner?
Ans: KINDS/CLASSIFICATION OF PARTNERS
1. ACTIVE/WORKING/MANAGING PARTNER
The shareholder or partners who participate in the daily functioning of the business or help other partners are called the working/active/managing partner.
2. DORMANT/SLEEPING PARTNER
Sometimes a person invests his capital in the business but he does not participate in the working of business and also not known to public, is known as dormant/sleeping partner.
3. NOMINAL PARTNER
A person whose name is used as if he were a member of the firm but who is really not a member and is not entitled to share the profits of the concern is called a nominal partner. Such a person is not a necessary parry to a suit relating to the firm except in cases of suits on negotiable instrument. But he is liable for all acts of the firms as if he were a real partner. Nominal partner does not contribute any capital nor takes part in the management of the business but allow his name to be used in the business.
4. QUASI PARTNER
One who has retired from the business, but has left is capital in business as a loan receiving interest varying with the amount of profits is called quasi partner. Strictly speaking he is not a partner, he is only a deferred creditor.
5. PARTNERS WITH CAPITAL
Partners with capital are those who invest capital in the business but they may or may not participate in it is called partner with capital.
6. PARTNERS WITHOUT CAPITAL
Sometimes partners are created in the business due to particular skill or business ability of such persons. They do not invest capital. To have benefits from his business ability the partners with capital make him also a partner is their business. A partner without capital is also given the prescribed share out of the profits.
7. LIMITED PARTNERS
A partner whose, loss responsibilities arc restricted to his share only is called limited partner. He cannot take active part in business as well as management of business.
8. UNLIMITED LIABILITY
Every partner has an unlimited liability. He is responsible for every type of liability from his own share. If a partner is unable to dear his liability his burden shifts to other partners.
9. PARTNERS IN PROPITS ONLY
A person may stipulate with other partners he will be entitled to a certain share of the profits only without liability for the losses. Such partner may be called a partner in profit only. He will doubtless be liable to third parties for all acts of the firm- Partners of this kind generally have no part in the management of business.
Where a member of the firm agrees to share the profits derived by him from the partnership with a stranger these arises a sub-partnership between the contracting member and the stranger. Such stranger is said to be a sub-partner although he is no sense, A partner is the original firm and has no rights against it is the liable for its debts.
11. INCOMING PARTNERS
A person who is admitted into an already existing firm either with the consent of all the parties permitting the introduction of a new partner or partners is called new partner/incoming partner.
12. OUT GOING/RETIRED PARTNERS
A person who goes out of a firm in which the remaining partners continue to carry on the business is called a retired or outgoing partner.
13. SILENT PARTNER
Silent partner does not participate in the affairs of the business is called silent partner.
14. SECRET PARTNER
Secret partner is active in the running life of the firm/business, public does not know him as partner of the firm/business. He pays his share in the capital and is liable to settle the creditors of the firm.
15. MINOR PARTNER
There is no restriction to join the minor (below 18 years of age) in the partnership by law. He is not competent to enter in the contract but he may became partner with the consent of all existing partner Minor partner is only admitted in the profit of the business. He has no liability of loss of the business.
16. ADULT PARTNER
Adult partner mean who is above 18 years old man he is admitted in the profit and loss of the firm. Its wondrous harmonies searching the subtlest windings of your. http://www.writemypaper4me.org
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