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Active Partners

Moreover, companies are required to pay more for research to adopt premium pricing. They are required to learn about the preferences of people and the people that they want to target using a premium pricing strategy. All of this causes enormous expenses. If these costs are not included in the price of products, then the company is required to bear this cost. In addition to this, understand your market and understand the people you are targeting to understand whether there is a need for a luxury

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32 views

Active Partners

Moreover, companies are required to pay more for research to adopt premium pricing. They are required to learn about the preferences of people and the people that they want to target using a premium pricing strategy. All of this causes enormous expenses. If these costs are not included in the price of products, then the company is required to bear this cost. In addition to this, understand your market and understand the people you are targeting to understand whether there is a need for a luxury

Uploaded by

LJBernardo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Active partners

The partners who actively participate in the day-to-day operations of the business are known as
active or working partners.

They contribute capital and are also entitled to share the profits of the business. They are also
liable for the debts of the firm.

2. Dormant partners

Those partners who do not participate in the day-to-day activities of the partnership firm are
known as dormant or sleeping partners.

They only contribute capital and share the profits or bear the losses, if any.

3. Nominal partners

These partners only allow the firm to use its name as a partner. They do not have any real interest
in the business of the firm. They do not invest any capital or share profits and also do not take
part in the conduct of the business of the firm.

Less paperwork
Creation of limited partnerships just like general partnerships do not require bulky paperwork,
very little paperwork is required as opposed to creating a corporation. It is, however, essential to
file the partnership agreement with the state where the business operates.

Investment opportunities
A great way of offering investors the chance to share in the profits and losses made by the
company without actually involving them in the daily operations of the business is through a
limited partnership.

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