The correct answer is: C. not liable for the acts of other partners.
A nominal partner is a partner who is not actively involved in the management of the business and is not liable for the debts of the business. They are usually only entitled to a share of the profits, if any.
A. not entitled to share the profits of the concern – This is not always the case. A nominal partner may be entitled to a share of the profits, even if they are not actively involved in the management of the business.
B. entitled to equal share in the profits unless there is an agreement to any other profit sharing ratio – This is not always the case. The profit sharing ratio between partners is usually agreed upon at the time of formation of the partnership.
C. not liable for the acts of other partners – This is the main characteristic of a nominal partner. They are not personally liable for the debts of the business, even if they are named as a partner on the business’s documents.
D. not able to third parties – This is not always the case. A nominal partner may be able to third parties, if they are held out as a partner by the other partners.