Hi,
What is exactly a sleeping partner? are they general partners with unlimited liability? or are they limited partners?
There is a question in the mock exam that says that 'the sleeping partner incurs full liability even though he takes no active part in the running of the business'.
Ask the Tutor ACCA LW
sleeping partners
7y ago#1Sleeping partners are simply partners that have chosen to take no active part in running the business of the firm
They are not limited partners unless the firm is registered as a limited partnership and the non-active one is identified as being a limited partner
So, yes, they are general partners (unless specified otherwise in a registered limited partnership), they take no active part in the running of the firm, and they incur full liability for the debts and liabilities of the firm
OK?
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