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In a partnership, a partner who owns a share in the company's equity, but does not take part in management. A partner provides capital in order to fund the company's operations and is liable for loss up to the amount of an investment. A silent partner is also responsible for at least a portion of the company's tax liability. Less commonly, a silent partner is called a sleeping partner.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
sleeping partnera partner in a PARTNERSHIP who contributes capital to finance the business but takes no active part in managing the company. Sleeping partners still retain unlimited liability for the debts of the partnership alongside active partners.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson