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Give the Word / Term Or Phrase Which Can Substitute the Following Statement. a Partner Who Contributes Only Capital for the Business but Does Not Take Any Active Part. - Book Keeping and Accountancy

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Question

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

A partner who contributes only capital for the business but does not take any active part.

One Word/Term Answer
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Solution

Sleeping partner

Explanation: A partner who contributes only capital for the business and does not take any active part in the day to day functioning of the business is regarded as a sleeping partner.

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Chapter 1: Introduction to Partnership - Exercise 2 [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 2 | Q 7 | Page 13
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