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WAEC Financial Accounting 2025 Question 26

Question 26

Partnership Accounts

A person who lends his name to be used as a partner without any contribution of capital is a

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

Answer: D (nominal partner.)

Explanation

A nominal partner only lends his name and contributes no capital; a dormant partner contributes capital but takes no part in running the firm.