Friends, as we all know that partnership firm may consist of various kinds of partners. Nominal Partner, Secret Partner, Active Partner, and Sleeping Partner are some of the examples of types of partners.
We have already discussed about various kind of partners in our old articles. If you really want to read those articles
What is the meaning of the Secret Partner?
As the name suggests itself, Secret Partner is someone who is kept away from the eyes of general people. This kind of partner is those who don’t have anything to do with a name and fame which gets from that particular business.
Like any other active partner, this type of partner also takes part in every business-related activity like raising funds, managing day-to-day activity, and sharing profit and loss with other partners.
The functions and the responsibility of this type of partner is also the same as an active partner. But the main difference between both of them is that an active partner is a well-known face of the partnership firm while no one literally knows anything about the secret partner.
Functions of Secret Partner
- Secret partner is someone who is managing all the business related activities secretly. He is not taking care of any kind of media attention and public appearance.
- Secret partners also have to manage various kinds of activities related to funds like raising funds to manage it and make a future strategy for what to do with the remaining funds.
- Apart from all the activities he also manages all kinds of day-to-day operation-related activities and does all kinds of monitoring of that business.
Why Someone Become a Secret Partner?
This thought must have come in your mind that when all the work is to be done like an active partner, then what is the need to become a secret partner after all.
But, here I am going to give you a some little information about why people choose to become a secret partner for any particular partnership firm.
Some people genuinely do not want any kind of attention
Friends, there are two types of people in this world. One who always needs attention and the other who has nothing to do with any kind of attention.
The latter ones are those people who aren’t attention seekers, they preferred to be a secret partner for any kind of partnership firm.
This may look funny while you are reading but it is the actual reality of this world. I am going to tell you some more reasons too.
Your History is not good with common people
Business is what? It is the process of attracting as many targeted customers as you can and earn a decent amount of money from them by providing your valuable services.
Suppose if some person’s image is not well in the eyes of targeted people due to one or another reason, will they come to buy that person’s service? Definitely not.
Here the that role-play an important role. That person will try to run his own business from behind the curtains without using his name.
That secret type of partner will invest his valuable money in that business, will also monitor day-to-day activities and he/she will also share the profit and loss of that particular business.
What are the Liabilities of the Secret Partner?
I know, you must be thinking that what are the liabilities of any secret partner. Let me answer the same question in the latter part of this article.
Like any other partner, the secret partner’s liability is also unlimited. I am telling you the exact reason for your WHY?
As we all know that secret partner’s all functions of work are the same as any active partner. He has to do all kinds of work that an active partner does during his/her day-to-day activities.
So he is also responsible for all the profit and loss-related matters in any kind of partnership firm due to his direct activities. That’s why the liabilities of the secret partner are always unlimited.
Final Words on What do you mean by a Secret Partner
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