Q72
A sleeping partner is one who __________.
A.
contributes capital
AnswerB.
takes active part in the business
C.
contributes members
D.
contributes materials
Answer: Option A
Solution
Answer: Option A
Solution:
A sleeping partner is one who contributes capital. A sleeping partner is a partner who 'sleeps', that is, he does not take active part in the management of the business. Such a partner only contributes to the share capital of the firm, is bound by the activities of other partners, and shares the profits and losses of the business.