Home › CA Foundation › businesslaw › Partnership — General Nature of Partnership › A sleeping (dormant) partner:
A sleeping (dormant) partner:
AShares profits and losses and is liable to third parties, but need not give public notice of his retirement
BCannot be sued by third parties
CIs liable only for his capital
DDoes not share profits or losses
Answer & Solution
Correct answer: A. Shares profits and losses and is liable to third parties, but need not give public notice of his retirement
A dormant partner shares profits/losses and is liable to third parties like any partner, but because he is unknown to outsiders he need not give public notice of retirement.
Related questions
Unlike a company which enjoys perpetual succession, in a partnership the death or insolvenIn determining the existence of a partnership under Section 6, the sharing of profits is:The name under which the business of a partnership is carried on is called the:Which correctly distinguishes partnership from co-ownership?A 'sub-partner' (a person with whom a partner shares his own share of profits):Under Section 28, a person who by words or conduct represents himself, or knowingly permitAn outgoing (retiring) partner remains liable to third parties for the firm's acts:An incoming partner admitted into an existing firm is: