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Sleeping partners are those who
take active part in the conduct of the business but provide no capital. However, salary is paid to them.
do not take any part in the conduct of the business but provide capital and share profits and losses in the agreed ratio
take active part in the conduct of the business but provide no capital. However, share profits and losses in the agreed ratio.
do not take any part in the conduct of the business and contribute no capital. However, share profits and losses in the agreed ratio.
- Active involvement with no capital: Generally known as working partners, as they contribute efforts and receive a salary but do not provide capital.
- No involvement, provides capital: These are sleeping or silent partners, contributing financially while not managing the business but sharing in profits and losses.
- Active involvement and profit-sharing without capital: Not typical for sleeping partners, as involvement implies active management.
- No involvement, no capital contribution: Unlikely to participate in profit-sharing without any investment or effort.
- Correct Answer: Option 2 - do not take any part in the conduct of the business but provide capital and share profits and losses in the agreed ratio
By: santosh ProfileResourcesReport error
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