Types of partners:
- General partners
They provide capital and play active part in business
- Inactive partner:
They provide capital to business and share profit and loss to firm but do not take part in management and day to day activities.
- Nominal partners:
They act only as a partner and give their name to the firm. They do not take part in management and day to day activities and share profit and loss to firm
- Secret partner:
Their membership is kept secret to the outside world. They can take part in management
- Partner in profit only:
They share profit only but no loss is shared. They are generally inactive but have relation in money and goodwill.
- Minor partners:
They do not enter into contract and can’t be made partner in real sense but if there is consent of all partners then their partnership can be taken into consideration
- Retrieval partners:
Even if this partner leaves the firm other partners continue to operate business. They are liable for all debtor and share profit too. But they do not take part in management and day to day activities.
- Incoming partners:
If there is consent of all partners then their partnership can be taken into consideration. They aren’t held liable for debt before approval of all partners.