What is the term for a partner who has limited liability and does not participat

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Question: What is the term for a partner who has limited liability and does not participate in day-to-day operations?

Options:

Correct Answer: Silent partner

Solution:

A silent partner is one who has limited liability and does not engage in daily operations.

What is the term for a partner who has limited liability and does not participate in day-to-day operations?

What is the term for a partner who has limited liability and does not participate in day-to-day operations?

Step 1: Understand the term 'partner' in a business context.
Step 2: Learn about different types of partners in a business.
Step 3: Identify what 'limited liability' means (it means the partner is not personally responsible for the business's debts beyond their investment).
Step 4: Recognize that some partners do not take part in daily business activities.
Step 5: Combine the ideas of limited liability and not participating in daily operations to find the correct term.
Step 6: Conclude that the term for such a partner is 'silent partner'.

No concepts available.