Types of partners.
1. Active Partner:
A Working Partner is one who contributes capital to the business and takes active part in its management. Hence, he is called active partner.
2. Sleeping Partner:
A Sleeping Partner is one who contributes only capital to the business, but does not take part in its management. He is also called dormant partner or financing partner.
3. Nominal Partner:
A Nominal Partner does not contribute capital. Neither does he take active part in the management. His contribution in a partnership is limited to allowing the other partners to make use of his name.
4.Secret Partner:
A Secret Partner is actually a partner of the firm. But he does not hold out to the public as a partner of the firm but keeps his existence as secret. His liability is also unlimited.
