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Which type of partner shares another partner’s profit, is not legally a member of the firm, and does not bear liability for firm actions?

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Question

Which type of partner shares another partner’s profit, is not legally a member of the firm, and does not bear liability for firm actions?

Options

  • Secret Partner

  • Sub-Partner

  • Limited Liability Partner

  • Nominal Partner

MCQ
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Solution

Sub-Partner

Explanation:

A sub-partner receives part of a partner’s profit share but is not an official/legal partner.

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