DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : R.Dasharatham
Designation : Lecturer
Branch : D.C.C.P.
Institute : GPW, Warangal
Year : I year
Subject : Business Organization
Subject code : CCP-104
Topic : Forms of Business Organization-Sole
Trading and Partnership
Duration : 50 mts
Sub topic : Types of Partners
Teaching Aids: :P.P.T.,CCP104.14
Animation, Photos 1
Objectives

On completion of this period, you would be able to

know:

• Types of partners.
• Details of types of partners.

CCP104.14 2
 Recap
We know:
 Definition of partnership

 Features of partnership

CCP104.14 3
Types of Partners

 Let us now see the different types of partners.

CCP104.14 4
 Types of Partners

Active Partner:
 Who brings capital and takes interest in formation and
business is known as Working Partner.

CCP104.14 5
 Types of Partners

Dormant Partner :
 Who contributes his capital but does not take any
interest in the activities of the firm. Also called Sleeping
Partner.

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Types of Partners

Nominal Partner:
 Who just lends his name to the firm

 Without contributing capital and

 Does not take any interest in the activities also

 Also called as Quasi-partner.

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 Types of Partners

Minor partner:
 Actually minor shall not be a partner.
 But he can take the consent of the other partners.
 Soon after becoming major, he has to give public
statement.

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Types of Partners

Incoming Partner:
 Who is newly admitted into a firm.

 He has to bring some amount extra towards good will.

 That amount can be distributed among the existing

partners.

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Types of Partners

Outgoing Partner:
• Who goes outside of the firm.
• Reason may be due to insolvency, old age and
dislike to continue.
• Continuing partners will have to return his capital
along with good will earned by firm.

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Types of Partners

Partner by Estoppel:

• Who is not really a partner

• Who by his behaviour,gives impression to third
parties that he is also one of the partners.
• such partner is liable to share the debts of the firm.

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Types of Partners

Partner by holding out:

 Who is declared by others as a partner in the firm, but he

does not contradict or deny it immediately after coming
to know.
 He also liable for debts of third parties.

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Types of Partners

Sub-partner:

 Who is a third party in agreement with a partner

 He does not have any right to claim against the other
partners
 He is not the partner in the eyes of law
 He is not liable for the debts of the firm.

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Types of Partners

Partner in profits only:

 A person may enter into a special contract in which he is
given a share in profits but not liable for the losses.
 But he is liable to the third parties.

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Summary

We have discussed about:

 Types of partners.

 Liability towards third parties by various types of

partners.

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Quiz

1. A partner who contributes capital but does not take

any interest in the activities of the firm
a) Minor partner
b) Dormant Partner
c) Partner by Estoppel
d) Sub partner.

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2. A third party who enters into an agreement with a
partner to share his profit from the business is known as:
a) Minor partner
b) Partner by estoppel
c) Dormant partner
d) Sub partner.

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Frequently asked questions in the
examinations

1. List out the types of partners.

3. Explain the various types of partners?

5. Who is a dormant partner?

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Assignment
 List the different types of partners

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