What is the role of a 'silent partner' in a partnership?

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Question: What is the role of a \'silent partner\' in a partnership?

Options:

Correct Answer: To provide capital without participating in management

Solution:

A silent partner provides capital to the partnership but does not take part in the day-to-day management of the business.

What is the role of a 'silent partner' in a partnership?

What is the role of a 'silent partner' in a partnership?

Step 1: Understand what a partnership is. A partnership is a business arrangement where two or more people work together.
Step 2: Learn about the roles in a partnership. There are different types of partners, including active partners and silent partners.
Step 3: Know what a silent partner does. A silent partner gives money to the business but does not help run it.
Step 4: Recognize the benefits of having a silent partner. They provide financial support without being involved in daily decisions.
Step 5: Remember that silent partners still share in the profits of the business, even if they don't manage it.

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