Sponsor Area

Forms Of Business Organization

Question
CBSEENBS11003830

Define 'Partner by Holding Out'.

Solution
  • A 'Partner by Holding Out' is a person who is not a partner in a firm but knowingly allows himself/herself to be represented as a partner in a firm. 

  • Such a person becomes liable to outside creditors for repayment of any debts which have been extended to the firm on the basis of such representation.