Who has a smaller financial interest in the business
Who represents himself as a partner of holding out
Who neither contributes any capital nor takes any active part in the management
A partner who has larger financial interest in the business E. Who is not known to the outsiders but possesses real interest in the business and share in the profits of the business
Answer is Right!
Answer is Wrong!
The correct answer is: D. A partner who has larger financial interest in the business.
A dominant partner is a partner who has a larger financial interest in the business than the other partners. This means that they have more money invested in the business and, as a result, have more control over the business. Dominant partners are often the ones who make the major decisions about the business, such as what products to sell, how to market the business, and how to invest the profits.
The other options are incorrect because:
- A partner who has a smaller financial interest in the business is not a dominant partner.
- A partner who represents himself as a partner of holding out is a partner who is not actually a partner in the business, but who is trying to make it look like they are.
- A partner who neither contributes any capital nor takes any active part in the management is not a dominant partner.
- A partner who is not known to the outsiders but possesses real interest in the business and share in the profits of the business is a silent partner.