A partner whose name is used to boost the image of the business and does not contribute capital is a?
Answer Details
A partner whose name is used to boost the image of the business and does not contribute capital is called a "nominal partner". This type of partner is also known as a "partner by estoppel".
A nominal partner is not actively involved in the day-to-day operations of the business and does not contribute any capital to the business. Instead, they lend their name and reputation to the business in order to enhance its credibility and reputation. This can be beneficial in attracting customers, suppliers, and investors.
While a nominal partner may not contribute capital or actively participate in the business, they can still be held liable for any debts or legal obligations of the business. This is because they are seen as a partner in the eyes of the law and are therefore responsible for the actions of the business.
Overall, a nominal partner can be a useful asset for a business looking to enhance its reputation, but it is important to understand the legal implications of this type of partnership before entering into it.