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What is a Sleeping Partner?
16. What is a Sleeping Partner?
- An invested person who is involved in the daily operations of the partnership.
- A person who provides some of the capital for a business but who does not take an active part in managing the business.
- A person who holds himself out as a partner or permits a partner to hold him out.
- A person who gives an impression to others that he/she is a partner of the firm.
Answer: B) A person who provides some of the capital for a business but who does not take an active part in managing the business.
Explanation:
Silent Partners are essentially financial backers in the business. Their situation as a quiet accomplice agrees on them the option to survey the organization's financial reports and to have a voice in choices that influence changes to the nature or presence of the association.