sleeping partner

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sleeping partner

A sleeping partner provides the capital for a new café.

Definition

Noun: A sleeping partner is a person who invests money in a business but does not take an active role in its management or day-to-day operations. Their involvement is typically not publicly known.

Usage

This term is used primarily in British English to describe a silent investor in a partnership or business venture. The partner provides capital (money) but does not participate in running the business.

Examples
  • The company was founded by two active managers and a sleeping partner who provided the initial funding.
  • As a sleeping partner, her financial stake was significant, but she had no say in the operational decisions.
Advanced Usage
  • The concept relies on the distinction between providing capital and providing labor or management. The sleeping partner's return is usually a share of the profits.
  • Legally, a sleeping partner may still have liability depending on the structure of the partnership agreement, even if they are not publicly known as a partner.
Variants and Related Words
  • Silent Partner (Noun): This is the more common term in American English and is a direct synonym for "sleeping partner."
  • Dormant Partner (Noun): Another less common synonym with the same meaning.
Synonyms
  • Silent partner
  • Dormant partner
  • Limited partner (in some contexts, though this has a specific legal definition)
Antonyms
  • Active partner
  • Managing partner
  • General partner
sleeping partner

A sleeping partner provides the capital for a new café.

Noun
  1. a partner (who usually provides capital) whose association with the enterprise is not public knowledge

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