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What is a partner in profits only?

19. What is a partner in profits only?

1. An invested person who is involved in the daily operations of the partnership.
2. A person who provides some of the capital for a business but who does not take an active part in managing the business.
3. A partner who gets into an agreement to share only the profits of the partnership firm and not the losses.
4. A Partner who is under the age of 18.

Answer: C) A partner who gets into an agreement to share only the profits of the partnership firm and not the losses

Explanation:

This partner will just share the benefits of the firm, he won't be obligated for any liabilities. In any event, when managing outsiders, he will be responsible for all demonstrations of benefit just, he will share none of the liabilities.