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Diifrence between active and sleeping partners

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Diifrence between active and sleeping partners

Posted by Onkar Bhayana 8 years, 3 months ago

CBSE > Class 12 > Accountancy

1 answers

Amar Kumar 8 years, 3 months ago

General, Active or Working Partner : The partner who provides capital and takes active part in the conduct of business is known as general or active partner. He is also known as working partner who gives special assistance to the firm. He may or may not be renewed by him. It depends upon the agreement between the partners.

Inactive, Dormant or Sleeping Partner : The partner who provides capital to the business and shares in the profit or loss of the firm but does not participate in the management is known as inactive, dormant or sleeping partner.

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