Silent Partner
Definition
A Silent Partner invests capital in a business but does not take part in daily management or decision-making processes. They provide financial support while remaining in the background of the company`s operational activities.
Benefits
A silent partner provides capital to a business without involving themselves in daily management or decision-making.
Frequently Asked Questions
Which partner invest capital but does not take active part in management? A limited partner contributes capital to a business but does not participate in daily management.
What is an investor who provides capital but doesn’t get involved in the day-to-day operations of the company? This investor is known as a passive investor.
What is a person who invests in a business but takes no part in the day-to-day operations of the business called? This person is known as a passive investor.
Summary
A silent partner provides financial backing but does not get involved in daily management or decision-making.