A sleeping partner is one who __________.
A
contributes capital
B
takes active part in the business
C
contributes members
D
contributes materials
Correct Answer: contributes capital
A sleeping partner is one who contributes capital. A sleeping partner is a partner who 'sleeps', that is, he does not take active part in the management of the business. Such a partner only contributes to the share capital of the firm, is bound by the activities of other partners, and shares the profits and losses of the business.