In a partnership, an industrial partner typically contributes which of the following?

• A. Capital
• B. Labor or industry but not capital
• C. Both capital and labor
• D. Neither capital nor labor

Answer: (B)

An industrial partner is defined by contributing labor or the industry they bring to the business, rather than cash capital. In partnerships, you have typically two kinds of contributors: those who provide capital and those who provide effort, skills, or industry. The industrial partner’s key role is to put in their labor or expertise, not to supply money as their primary contribution. That’s why the correct answer points to labor or industry as the contribution. Providing capital would describe a capital partner, while including both capital and labor would describe a partner who isn’t limited to the industrial role, and contributing neither would not fit the concept of an industrial partner.