Q.Explain the different types of partners found in a partnership firm.

Partners differ in how much capital they contribute, how much say they take in management, and — sometimes surprisingly — how much liability they end up bearing. …

Active (Working) partner — contributes capital, actively takes part in the day-to-day conduct of the business, and shares in profits and losses; his liability to outsiders is unlimited.

Sleeping (Dormant) partner — contributes capital and shares profits/losses like an ordinary partner, but does not take part in day-to-day management. Staying out of management does not reduce his liability, which remains just as unlimited.

Nominal partner — lends only his name and reputation to the firm, contributing no real capital and taking no genuine share of profits (he may receive a fixed payment for the use of his name). He is nevertheless liable to outsiders exactly like any other partner, since third parties rely on his name being associated with the firm.

Partner in profits only — by agreement among the partners, shares only in the firm's profits, not its losses, as between the partners themselves. This internal arrangement does not, however, protect him from being held fully liable by outside third parties.

Minor admitted to the benefits of partnership — since a minor cannot enter into a valid contract, he cannot become a full partner, but with the consent of all existing partners he may be admitted to the benefits of an already-formed partnership (Section 30). He shares the agreed profits, and his liability for losses is capped strictly at his own share in the firm's property — he can never be made personally liable beyond that. On attaining majority, he must, within six months, publicly elect whether to become a full partner or to sever his connection with the firm entirely. …

Assuming that only 'active' partners can be held liable, and that sleeping/nominal partners escape liability because they don't manage the business — every category except the …