This article summarizes the types of partnerships that exist. Active Partner: An active partner is also referred to as a working partner. An active partner performs a direct role in the management and running of the business. They also invest in the partnership business. Sleeping Partner: A sleeping partner is a partner who: Silent Partner: A silent partner is a partner who: Secret Partner: A secret partner is a partner who: Nominal Partner: A nominal partner is a partner who: Minor Partner: A minor partner is a partner who:
Types of Partnership FAQs
There are six types of partnership: - Active Partner - Sleeping Partner - Silent Partner - Secret Partner - Nominal Partner - Minor Partner
An active partner is also referred to as a working partner. An active partner performs a direct role in the management and running of the business. They also invest in the Partnership business.
A silent partner is a partner who: (1) Shares the gains and losses of the business but does not participate in the conduct and management of the business, (2) Is known to the public as a partner, (3) Is liable to creditors like other partners
A secret partner is a partner who: (1) Takes an active part in the conduct and management of the business, (2) Is not known to the public as a partner, (3) Is liable to creditors like other partners
A minor partner is a partner who: (1) Cannot be a partner because they cannot contract, (2) Can share in the gains of the business with the consent of all partners, (3) Has another person to act as their guardian, (4) Does not bear the losses of the firm out of their private property
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
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