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Types of partners in partnership

Answer Text:
Types of partners.
- Partners can be classified into different types according to the following:
(a) Roles played by the partners;
(i) Active partner: One who plays an active role in the day to day activities of the business.
(ii) Dormant/silent/sleeping partner: One who does not participate actively in the daily activities of the business.
(b) Liabilities of the partners to the business debts;
(i) General partner: Those who have unlimited liabilities
towards the debts of the business.
(ii) Limited partners: Those who have limited liabilities towards business debts.
(c) Age of partners;
(i) Minor partner: Those who have not attained the age of 18 years.
(ii) Major partners: Those who are above the age of 18 years.
(d) Capital contributions;
(i) Real partner: One who has actually contributed to the business.
(ii) Nominal or quasi partner: One who only allows his or her name to be used as the name of the business.
- Does not contribute capital therefore not entitled to share in the profits.