Partnership is mainly concerned with the division of almost everything division of work, division or share of loss and share of profit as well, division of work is probably the most effect factor for any business as in this element the business avails the not only the benefit of more profit but it also helpful for the other party to rest and give time to its family and friends.
There are so many kinds of partner whose work is divided according to their settlement written on the partnership deed or agreement, some of them are described here below:
* General or Active Partner: it is a partner who contribute its capital with a company or business and it also provide its physical and mental services to business by his will by personal management of issues of the company he shows the role of his efforts to company for which he is known as general or active partner for the company.
In the agreement the Active Partner is liable to receive a monthly pay for his personal activation in the management, the time that a partner gives to business with the consent of partners the pay or salary or the pay of a partner is decided, an active partner is liable to debt as well.
* Sleeping or Inactive Partner: A sleeping partner is who only contribute his money or capital to a business with no personal activity, he do not take any part in the management of business, inactive partner is also known as dormant partner, with activation and inactivation of partner is decided before the commencement of the partnership and it is clearly written in the partnership deed that these particular duties are of the partner to follow, the sleeping partner receives profit according to the earning of the company but he do not receives the extra pay that an active partner receives for his time and effort provided to a business but he is also liable for the debt.
* Nominal Partner: This is the only partner who do not make any investment to a business he is an employee of the business but his activities his personal appearance and efforts shows himself as a partner to business he is the representative of the business, he contribute only his name to business. (in such kind of business only famous personalities are involved).
For the nominal partners company or business uses their name and fame for which the famous personalities are paid a very handsome amount.