A silent partner is an individual who provides financial investment to a business, but does not participate in the day-to-day management or decision-making of the company. They are often referred to as "silent" because they do not have an active role in the company and do not have a say in how the business is run. In return for their investment, silent partners receive a share of the profits and losses of the business. Silent partnerships are often formed as a way for individuals to invest in a business without having to commit to the time and effort required to run the company. However, it is important for silent partners to be aware of their legal responsibilities and potential liability, as they can still be held accountable for the actions of the business.

A silent partner, also known as a sleeping partner, is an individual or entity who invests capital into a business venture but plays no active role in its management or day-to-day operations. Unlike active partners or entrepreneurs, silent partners typically have limited involvement in decision-making processes, strategic planning, or the daily execution of business activities.

Silent partners provide financial backing to the business in exchange for a share of the profits or ownership stake. They may contribute capital to help start or expand the business, but they do not participate in its administration or engage in its affairs actively.

The role of a silent partner is primarily passive, focusing solely on investment returns. However, they still bear a degree of risk associated with the success or failure of the venture. While they enjoy potential profits, they may also incur losses if the business fails to perform as expected. Silent partnerships are common in various industries, particularly in small businesses and startups where additional funding is necessary for growth.