What is a nominal partner in business partnerships?

A nominal partner in a business partnership is someone who is listed as a partner in the partnership agreement but does not actively participate in the day-to-day operations of the business. This type of partner may have a financial stake in the business but does not have decision-making authority or management responsibilities. Nominal partners are often included in partnerships for legal or financial reasons, such as to meet minimum partnership requirements or to provide additional capital without being involved in the business operations.