Distinguish between a Secret partner and Nominal partner

cbse
formsofbusiness

#1

(i)Meaning : A secret partner is one whose association with the firm is unknown to the general pubic, whereas a nominal partner is one who allows the use his name by a firm.
(ii)Capital contribution : A secret partner contributes capital but a nominal partner does not contribute capital of into the firm.
(iii)Participation in management : A secret partner participate in management but secretly the other hand a nominal partner does not participate in management.
(iv)Sharing of profits/losses : A secret partner shares profits and losses whereas a nominal partner does not share.