Partner by holding out is also known as ______.
-
active partner
-
dormant partner
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partner by estoppel
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partner by stoppage
C
Correct answer
Explanation
Partner by holding out means a person represents themselves as a partner (or allows others to believe so), making them liable to third parties who relied on this representation. This is called 'partner by estoppel' in legal terms - they are estopped from denying they are not a partner.