WAEC SSCE - Commerce - 2022 (Objective)

Question 1 Report

A partner who contributes only his name to the formation of a partnership is

a nominal partner

a limited partner

a general partner

an active partner

Answer Details

A partner who contributes only his name to the formation of a partnership is a "nominal partner". This means that the partner is not actively involved in the day-to-day operations of the business and does not make any significant contributions in terms of capital or expertise. The nominal partner is essentially a figurehead or a silent partner, and is usually included in the partnership agreement for the purpose of lending credibility to the business or to provide some other strategic benefit.

	#
Sales	50,000.00
Debtors	10,000.00
Cash-in-hand	5,000.00
Opening stock	30,000.00
Creditors	8,000.00
Purchases	16,000.00
Overdraft	12,000.00
Closing stock	10,000.00






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