INTRODUCTION TO BUSINESS

(MGT211) ASSIGNMENT 1
SUBMITTED BY AJWA HIRA
SEMESTER 3RD
BS PSYCHOLOGY
STUDENT ID BC210414746
DATE 06 DECEMBER 2022

Scenario:

At the start of year 2021, five friends from Faisalabad (a famous city of Pakistan) join
hands to start a textile manufacturing business in Partnership. For simplicity let’s say
names of those partners are MR. A, B, C, D, and E who have invested PKR 30 million,
30 million, 45 million, 20 million and 15 million respectively. Mr. D has decided not
to take part actively in the activities of the business whereas Mr.B wanted not to
disclose himself as partner to general public due to some political reasons. As a result
Mr. A have been given responsibility to run the business. Partnership deed has been
drafted and signed by all the partners.

Requirement:

You are required to recall the five types of partners in your mind and identify the
distinct type of each partner in this Partnership and mention only one reason for that.
Present your solution as per the following format:

Sr. Partner Name Partner Type Reason

1 A Active Partner A partner who takes active part in the affairs of
business and its management is called active

Partner.  He contributes his share in the capital and is

liable to pay the obligations of the

Firm.
(Mr A has been given responsibilities to run the
business)
2 B Secret partner A partner who takes active part in the affairs of the
business but is unknown to the public as
a partner is called secret partner.  He is liable to the
creditors of the firm. (Mr B wanted not to disclose
himself as a partner due to some political problems)
3 C Senior Partner A partner who invests a large portion of capital in the
business is called senior partner.  He

has a prominent position in the firm due to his

experience, skill, energy, age and other facts.

4 D Sleeping Partner A partner who only contributes is the capital but does
not take part in the management of

The business is known as sleeping partner.  He is

liable to pay the obligations of the firm.
(Mr D has decided not to take part actively in the
business activities)
5 E Junior Partner A person who has a small investment in the firm and
has a limited experience of business is

called junior partner.