Which of these is a type of partnership in business?

1. Analyze the question You are asked to identify which option is a recognised type of partnership. Note that the question is about partnerships, not other forms of business ownership.

2. Explain the concept A partnership is a business owned by 2 to 20 persons (in Nigeria, under the Companies and Allied Matters Act) who agree to share profits, losses and responsibilities. The main types are:

• General partnership: all partners take part in management and have unlimited liability.
• Limited partnership: has at least one general partner with unlimited liability and one or more limited partners whose liability is restricted to the amount they invested. Limited partners usually do not take part in management.
• Sleeping (dormant) partnership: a partner contributes capital but takes no active role.

3. Go through the options

• A. Limited partnership: a standard, recognised type of partnership. ✔
• B. Limited liability company: this is a company (a separate legal entity with shareholders), not a partnership.
• C. Private partnership: not a standard classification. "Private limited company" is the familiar term, but it is a company.
• D. Joint stock partnership: "joint stock company" refers to a company whose capital is divided into shares, so it is not a partnership type in the usual Nigerian syllabus.

4. Answer The correct option is A, Limited partnership.

5. Exam tip Match the word partnership with the types: general, limited, sleeping. Anything with "company", "limited liability" or "joint stock" points to a company, not a partnership. Watch for this trap in JAMB questions.