Types of partnership

Ordinary partnership, each partner is responsible for every ship including equal responsibility, sharing risks and opportunities equally and equal power just to mention but few. 

Limited partnership, members in this category and  its debts are restricted to the amount of money contributes in operating the business. All partners are not taking equal part in the management of their business, although there must be a member who bears the risks and also takes an active part in daily activities of the business. In a limited partnership, there must be at least one ordinary partner who has unlimited liability.




Types of partners

  • An active partner who takes parts in every  activity for the business and he is entitled, among others, salary as articulated in partnership deed . 
  • A dormant or sleeping partner who contributes money needed for starting a business and he is only entitled to profit sharing and losses as agreed during pre-formation of the business. 
  • A normal passive partner who is not entitled to anything from the business but he has a great name to the public that can sell the business. This partner is appointed  because of his experience, fame, wealthy or his position in the general public. 
  • Silent partner who is known to the public as a partner but who does not take an active in the management of the firm. 
  • A secret partner who is active in the affair of the business but not known to the public as a partner.