Maharashtra State BoardHSC Commerce 12th Board Exam
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Give the Word / Term Or Phrase Which Can Substitute the Following Statement. a Partner Who Acts and Behaves like a Partner, but He is Not a Partner of the Firm. - Book Keeping and Accountancy

One Word Answer

Give the word / term or phrase which can substitute the following statement.

A partner who acts and behaves like a partner, but he is not a partner of the firm.

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Solution

Partner by Estoppel or Holding out

Explanation: A partner who is actually not a partner of the firm but represents to the outside world that he is a partner in the firm is regarded as a partner by estoppel or holding out. Also, such persons are liable to outsiders as partners because on the faith of their representation, outsiders have granted credit to the firm.

Concept: The Indian Partnership Act 1932
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 1 Introduction to Partnership
Exercise | Q 13 | Page 13
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