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Answer in One Sentence Only. Who is Called a Nominal Partner? - Book Keeping and Accountancy

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Question

Answer in one sentence only.
Who is called a nominal partner?

One Line Answer
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Solution

A nominal partner is a partner who is paid a certain amount of fee for lending his name to the firm, which is important for building recognition of the firm. He’s also called a limited partner, as he neither invests in the business nor actively participates in its affairs.

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Chapter 1: Introduction to Partnership - Exercise 1 [Page 13]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 1 Introduction to Partnership
Exercise 1 | Q 5 | Page 13
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