A partner whose only contribution to the partnership is his name and goodwill is?

A. an active partner
B. a limited partner
C. a nominal partner
D. a sleeping partner

Correct Answer:

Option C = a nominal partner

Explanation

A nominal partner is a person who does not have any real interest in the business or the working of the firm nor has any rights in the profits of the firm. They are usually people with well-known brands and names, who are added into a partnership for value or for promoting a brand with that person’s goodwill and fame.