Match each partnership term on the left with its correct legal definition or characteristic on the right.
- Sleeping PartnerContributes capital and shares in profits or losses, but does not take an active role in daily business management.
- Partnership DeedWritten agreement specifying the internal regulations, capital contributions, and operational rules of the firm.
- Dissolution by NoticeTermination of a partnership at will when any partner explicitly gives written communication of their intention to dissolve it.
- Right to Share ProfitsStatutory right allowing every partner an equal share in the business returns unless agreed otherwise in writing.
Answer
Sleeping Partner matches with contributing capital without active management; Partnership Deed matches with the written agreement governing internal rules; Dissolution by Notice matches with terminating a partnership at will via written notice; Right to Share Profits matches with statutory entitlement to equal returns unless otherwise agreed.
Each term is correctly matched to its statutory definition under commercial partnership law: a sleeping partner contributes capital but stays inactive in operations; the Partnership Deed is the foundational written agreement; dissolution by notice applies to partnerships at will; and profit sharing is a core entitlement of partners.
Step-by-Step Solution
Key Concept
Partnership concepts including partner classifications, constitutional agreement, partner rights, and statutory dissolution mechanisms.