Business Studies

Write short note on the following:
Types of partners.


SOLUTION
The different types of Partners -
  1. Active Partner
    The partner who has invested more in partnership business and directly involves in business activities is called an active partner. They take all responsibility of business, he/she bears unlimited liability, share the profit of business and devote their full time to the business. For the full-time involvement, active partners receive remuneration and for the investment, he will receive the share of profits.

  2. Sleeping Partner
    The partners who have invested money but don’t get involved in the business activity is called a sleeping partner. A sleeping partner bears the loss of business, has unlimited liability and takes all other responsibility as like active partner but he/she is not directly involved in business activities.

  3. Nominal Partner
    The partner who has not invested money but nominated as a partner is called nominal partner. He/ she doesn't bear any risk or loss of business. It is a special kind of partners who is nominated as a partner because of his reputation in society.

  4. Quasi Partner
    The partner who is retired from business but the investment is not returned is called quasi-partner. This partner is neither liable for business activity nor has right over the profit of business after retirement.

  5. Limited Partner
    The partner whose liability is limited to his investment only is called limited liability. As the active partner, limited liability partner shares profit, invest money and participate in business but the difference is that limited partners do not have unlimited liability as an active partner.

  6. Minor Partner
    The partner below the age of 16 years age is called minor partner. They are not allowed to sign the legal document of business because of this he can be a partner only under the guardianship of another partner.

  7. Sub Partner
    The partner who shares the profit of business with other partners is called sub-partners. It has co-investment (joint investment) with other partners. This is made with mutual agreement and understanding with other partners. There profits and loss of business are shares by sub-partners according to agreements made internally by partners.

  8. Incoming Partner
    The partners who are going to enter in business is called incoming partners. The incoming partner is required to pay the premium amount to be a partner of the existing business. The agreement between existence partners is required to enter a new partner.

  9. Outgoing Partner
    The partner who is going to retire from business is called an outgoing partner. The outgoing partner can retire from the business by making an agreement with other partners. He can retire by selling his share to other partners or outside parties in the consent of existing partner. The outgoing partner is not liable for future liabilities of the partnership.

  10. Holding out - Estoppel Partners
    The partner who represents himself as a partner but does not invest money in business is called holding out or estoppel partners. He is a partner only in the eye of law or creditors. This partner doesn't share profits and does not bear loss as well. Therefore, he has no liability of the business.

  11. Secret Partners
    A Partners who invest money in the business and shares profit and losses but doesn't like to be disclosed as a partner in front of the public is called secret partners. He provides all necessary helps assistant to business indirectly.
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