A partner who only makes capital contribution but does not take part in the management of the partnership business is a/an?

A. ordinary partner
B. limited partner
C. dormant partner
D. nominal partner

Correct Answer: Option C

C. dormant partner

Explanation

Dormant partner: Contributor or investor who is not active in managing a firm and may not be known to the outsiders. A dormant partner shares profits and losses with other partners but (if he or she is not a signatory to the loan agreements) generally may withdraw from the firm without notice to the lenders.