MGT211 GDB Solved

Question:
Zeeshan started a small business of ready-made garments by taking a shop on rent. When
the business became stable, Zeeshan brought his younger brother Ziad in the business for
his help on 25% profit sharing basis only. Soon, with the hard work of both brothers,
their business expanded and they wanted to purchase a larger shop for their growing
business.
Zeeshan neither wanted to borrow money nor wanted to take bank loan. After much
thinking, he decided to invite one more partner in his business for expansion.
Awais, a friend of Zeeshan, left the country some years ago, is nowadays living in
Germany where he is doing job in a multinational organization. Zeeshan discussed his
plan of expanding the business with Awais and he immediately agreed to invest on 50%
sharing basis in the business and do not want to reveal his name.
At the initial stage, they owned only one large shop but due to success of the business in
the new place, further expansion was required; after thoroughly thinking, Zeeshan asked
his youngest seventeen-years-old brother (Waqar) to join them in ready-made garments
business after his college classes. Waqar agrees to join them on 10% profit sharing basis.
After reading above case, mention the type of partner in the below table:
i)
 (
 (
Sr. Person Type of Partner
Zeeshan
ii   Ziad
iii  Awais
iv)  Waqar
After reading above case, mention the type of partner in the below table:
ANSWER FOR DISCUSSION AS SOLUTION OD GDB
Sr. Person Type of Partner
i) Zeeshan Active partner and Senior partner (BOTH)
ii) Ziad Active partner and Junior partner ( BOTH)
iii) Awais Senior partner and Sleeping partner and Incoming partner (all)
iv) Waqar Minor partner and Incoming partner and Partner in profit only
Zeeshan :- He takes active part in his garments business and manages its affairs
 he also contribute his share in the capital and is liable to pay all obligations of .
the business. He is senior partner also as he pays a large amount of capital for
the business and has a prominent position in his business of garments.
Zaid:- He takes active part in his garments business and manages its affairs . he
also contribute his share in the capital and is liable to pay all obligations of the
business. He has small investment as compared to zeeshan and Awais and also
has a limited experience of the garments business so he is called junior partner .
Awais:- As he has only invested his capital and does not take part in active
business affairs and its managements so he is known as a sleeping partner. He
is liable to pay all obligations of the business. he is newly admitted in the
business so he is known as incoming partner too
Waqar:- He is minor partner as he can not be ib valid contract of the garments
business as he is just 17 years old and has the consent of all other partners and
he is share holder in profit only not in loss. As he is newly admitted in the
business so he is known as incoming partner too He is also not liable for any act
of the business performed before he become the partner unless he agrees to.