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Question
Select the most appropriate alternative from those given below and rewrite the statement.
A partner who lends only his name to the firm is called as__________________ partner.
Options
partner in profits only
partner by estoppel
nominal
minor.
Solution
A partner who lends only his name to the firm is called as nominal partner.
Explanation: A partner who merely lends his name to the firm is regarded as a nominal partner. He neither invests in the business nor takes active part in it. But he is important for building up a good reputation for the firm.
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