Which of the following is not a kind of partner:a)Dormant partnerb)Partners in losses onlyc)Partner by estoppeld)Nominal partnerCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

According to your answer the partner are not only share of loss. The partner must share the both profit and loss of firm.

Answer

There is no such type of partner who shares only losses it is not a kind of a partner there is a partner in profits but not a partner in losses well coming to the other options they are one of the types of partners and thus option B is the correct

Answer

The correct answer is B: Partners in losses only.
Explanation:
Partners in losses only are not considered a kind of partner. Let's explain each of the other options in detail:
1. A: Dormant partner:
- A dormant partner, also known as a sleeping partner, is someone who invests capital in a partnership but does not participate in managing the business.
- They have no active role in decision-making or day-to-day operations.
- However, they still share in the profits and losses of the partnership.
2. C: Partner by estoppel:
- A partner by estoppel is someone who is not actually a partner but is represented or held out as a partner, either by their actions or by the actions of the partnership itself.
- This can happen when someone allows themselves to be held out as a partner, even though they have not made a formal partnership agreement.
- The partner by estoppel may be liable for the partnership's obligations and debts as if they were an actual partner.
3. D: Nominal partner:
- A nominal partner is someone who lends their name to a partnership but does not contribute any capital or participate in the management of the business.
- They are essentially a figurehead or a person of reputation who lends credibility to the partnership.
- However, they do not have any ownership or profit-sharing rights.
In summary, partners in losses only is not a valid type of partner. The other options (dormant partner, partner by estoppel, and nominal partner) are all recognized types of partners in a partnership.

Similar CA Foundation Doubts

Which of the following is not a kind of partner

Can you explain the answer of this question below:Which of the following is not a kind of partner:A:Dormant partnerB:Partners in losses onlyC:Partner by estoppelD:Nominal partnerThe answer is b.

can any one explain the difference between Nominal partner and partners by estoppel?

In a partnership where partners agree to give share in profit but without any rights of the firm such partner is

In a partnership where partners agree to give share in profit but without any rights of the firm such partner is

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