WAEC Commerce 1996 Question 62

Question 62

Business Units

A partner who does not play an active role in a business but contributes capital is a

  1. A.secret partner
  2. B.dormant partner
  3. C.nominal partner
  4. D.limited partner
  5. E.general partner
Show the answer and explanation

Answer: B (dormant partner)

Explanation

A dormant (sleeping) partner contributes capital but takes no part in running the firm.