Partnership Firm (VSAQs)

Commerce-1 | 4. Partnership Firm – VSAQs:
Welcome to VSAQs in Chapter 4: Partnership Firm. This page includes the most important FAQs from previous exams. Each answer is provided in simple English and presented in the exam format. This approach helps you prepare effectively and aim for top marks in your final exams.

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VSAQ-1: Who is an Active Partner?

An Active Partner, sometimes called a Working Partner, is like the hands-on person in a group project. Imagine you’re working on a school project with friends, and one person is taking charge—organizing tasks, making decisions, and ensuring everything runs smoothly. In a business partnership, the active partner does something similar. They are deeply involved in the day-to-day operations and management of the business. Besides putting in money (capital) into the business, they also help make important decisions, manage employees, and deal with customers. Because they are so involved, they share in both the profits and losses of the business. So, while other partners might be more hands-off, an active partner is right in the middle of everything, helping to keep the business running smoothly.