Commerce JAMB

A business partner who provides capital but abstains from participation in administration of a firm is a?

A. general partner
B. nominal partner
C. secret partner
D. dormant partner

Correct Answer:

Option D – dormant partner

Explanation

Dormant partner: a partner who contributes capital in a business but takes no share in the active business of a company or partnership, but is entitled to a share of the profits, and subject to a share in losses. called also sleeping partner or silent partner

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