A 'nominal partner' is one who:
AShares profits but not losses
BLends his name to the firm without real interest, takes no share of profits, yet is liable to third parties
CIs admitted only to the benefits of partnership
DInvests capital but takes no profit
Answer & Solution
Correct answer: B. Lends his name to the firm without real interest, takes no share of profits, yet is liable to third parties
A nominal partner only lends his name; he neither contributes capital nor shares profits, but he is liable to third parties for the firm's acts.
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