Question

Ostensible partners are those who ______.

पर्याय

• do not contribute any capital but get some share of profit for lending their name to the business

• contribute very less capital but get equal profit

• do not contribute any capital and without having any interest in the business, lend their name to the business

• contribute maximum capital of the business

Answer 1

Ostensible partners are those who do not contribute any capital and without having any interest in the business, lend their name to the business.

Explanation:

An ostensible partner is a person who lends their name to the business and is treated as a partner by third parties but does not actively participate in the business or contribute any capital. They do not have any actual role in managing the business but may share in the profits. Their primary function is to enhance the credibility of the business by allowing their name to be used.