In a partnership, what is the term for a partner who does not actively participate in the business but is known to the public?
Practice Questions
1 question
Q1
In a partnership, what is the term for a partner who does not actively participate in the business but is known to the public?
Silent partner
Active partner
General partner
Limited partner
A silent partner is one who does not participate in the day-to-day operations but is still recognized as a partner.
Questions & Step-by-step Solutions
1 item
Q
Q: In a partnership, what is the term for a partner who does not actively participate in the business but is known to the public?
Solution: A silent partner is one who does not participate in the day-to-day operations but is still recognized as a partner.
Steps: 4
Step 1: Understand what a partnership is. A partnership is a business arrangement where two or more people share ownership and responsibilities.
Step 2: Learn about the different types of partners in a partnership. There are active partners who manage the business and silent partners who do not.
Step 3: Identify the role of a silent partner. A silent partner does not take part in daily operations but is still a part of the business.
Step 4: Recognize that a silent partner is known to the public. This means that even though they are not involved in running the business, people know they are a partner.
