Definition of Silent partner:
A partner not sharing in the actual work of a firm.
A silent partner is an individual whose involvement in a partnership is limited to providing capital to the business. A silent partner is seldom involved in the partnership's daily operations and does not generally participate in management meetings. Silent partners are also known as limited partners, since their liability is typically limited to the amount invested in the partnership.
Partner who shares risks and rewards of an enterprise or venture with other partners, but does not take part in its day-to-day management. Also called sleeping partner.
Apart from providing capital, an effective silent partner can benefit an enterprise by giving guidance when solicited, providing business contacts to develop the business, and stepping in for mediation when a dispute arises between other partners.
How to use Silent partner in a sentence?
- While not active in daily management, a silent partner still may serve an advisory role.
- A silent partner can earn a passive income from an investment should the business become profitable.
- Entrepreneurs with limited capital often seek out a silent partner to help get a business off the ground.
- The other 15% of the firm is owned by four silent partners, who invested another $10,500 in seed money for a total of $70,000 in start-up costs.
Meaning of Silent partner & Silent partner Definition