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WAEC Financial Accounting 2020 Question 32

Question 32

Partnership Accounts

A partner who contributes capital but does not participate in the day-to-day running of the business is

  1. A.an active partner.
  2. B.a limited partner.
  3. C.a nominal partner.
  4. D.a sleeping partner.
Show the answer and explanation

Answer: D (a sleeping partner.)

Explanation

A sleeping (dormant) partner provides capital but takes no part in management.