Which of the following type of partner h

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Target Exam

CUET

Subject

Business Studies

Chapter

Forms of Business Organisation

Question:

Which of the following type of partner has limited liability?

Options:

Secret partner

Active partner

Nominal partner

None of the above

Correct Answer:

None of the above

Explanation:

The correct answer is option 4- None of the above.

No partner has limited liability. Every partner has unlimited liability.

Type	Capital contribution	Management	Share in profits/losses	Liability
Active partner	Contributes capital	Participates in management	Shares profits/ losses	Unlimited liability
Sleeping or dormant partner	Contributes capital	Does not participate in management	Shares profits/ losses	Unlimited liability
Secret partner	Contributes capital	Participates in management, but secretly	Shares profits/ losses	Unlimited liability
Nominal partner	Does not contribute capital	Does not participate in management	Generally does not share profits/losses	Unlimited liability
Partner by estoppel	Does not contribute capital	Does not participate in management	Does not share profits/losses	Unlimited liability
Partner by holding out	Does not contribute capital	Does not participate in management	Does not share profits/losses	Unlimited liability