| a partner taking no active part in the conduct of a business. |
| silent partner n. One that makes financial investments in a business enterprise but does not participate in its management. |
Silent Partner
An investor who does not have any management responsibilities but provides capital and shares liability for any losses experienced by the entity.
Investopedia Commentary
Silent partners are liable for in any losses up to the amount of their invested capital and participate in any tax and cash flow benefits.
Also known as a "sleeping partner".
Related Links
Evaluating A Company's Management
The Basics Of Corporate Structure
See also: General Partnership, Liability, Limited Partnership - LP, Management Risk, Master Limited Partnership - MLP, Partnership
Also spelled: silent partnership
silent partner
