Q2 D of 18 Page 265

Answer the following questions in one or two sentences each:

Who are sleeping or dormant partners?


Sleeping Partners in a partnership firm are those partners who are not actively involved in the daily work of the business. They contribute a fixed amount of capital and the profits and losses are shared in proportion to this contribution.


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2 B

Answer the following questions in one or two sentences each:

How do sole trading concerns help the consumers?


 2 C

Answer the following questions in one or two sentences each:

What are partnership firms?


 2 E

Answer the following questions in one or two sentences each:

How is the dissolution of partnership firm easy ?


 3 A

Answer the following questions:

Mention any four merits of sole trading concerns.