Multiple choice

Which of the following partners does not bind the firm by his acts?

  1. Active partner

  2. Dormant partner

  3. Nominal partner

  4. Sub-partner
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Sub partner is the partner of partner. He does not have mutual agency with any partner. Sleeping or dormant partner only invests the money. He is not known to public. Active partner actively participates in the business. Nominal partner gives his name to firm. All these can bind the firm by their acts.

Keep practicing — related questions