A person who contributes money to a partnership business and is also involved in its general supervision is called
Answer Details
A person who contributes money to a partnership business and is also involved in its general supervision is called an active partner. An active partner is one who is actively involved in the day-to-day operations of the partnership and has a say in the decision-making process.
In a partnership, there are typically two types of partners: active partners and limited partners. An active partner is a full partner in the business and is responsible for the management of the partnership, including its finances, operations, and employees. They share in the profits and losses of the business and have unlimited liability for the debts of the partnership.
On the other hand, a limited partner is a partner who contributes money to the partnership but is not involved in the management of the business. They have limited liability for the debts of the partnership and are typically only liable for the amount of their investment. Limited partners do not have a say in the day-to-day operations of the partnership.
In summary, a person who contributes money to a partnership business and is also involved in its general supervision is called an active partner. They are responsible for the management of the business and share in the profits and losses of the partnership, as well as having unlimited liability for its debts. This is different from a limited partner, who contributes money to the partnership but is not involved in its management and has limited liability for its debts.