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Explain the following term/concept: Nominal Partner. - Organisation of Commerce and Management

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Question

Explain the following term/concept:

Nominal Partner.

Short/Brief Note
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Solution

  1. A partner who only lends his name and reputation to the partnership firm is called a nominal partner.
  2. He is simply obliging his friends by allowing the firm to use his name as a partner.
  3. He may or may not be given any share in the profits of the firm.
  4. He does not contribute to the capital of the business.
  5. He is liable to the debts of the firm.
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Chapter 4: Forms of Business Organisation - I - EXERCISE [Page 93]

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Balbharati Organisation of Commerce and Management (OCM) [English] Standard 11 Maharashtra State Board
Chapter 4 Forms of Business Organisation - I
EXERCISE | Q 2. 8) | Page 93

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