Multiple choice

Partner by holding out is also known as

  1. active partner

  2. dormant partner

  3. partner by estoppel

  4. partner by stoppage
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Partner by holding out occurs when someone represents themselves as a partner or allows others to believe they are a partner, making them liable as a partner (estoppel) to third parties who relied on this representation. This is distinct from active partners (involved in management) or dormant partners (silent, not known to outsiders).

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