SLEEPING PARTNER Meaning and
Definition
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A sleeping partner, also known as a dormant partner or silent partner, refers to an individual or entity who invests capital in a business venture but does not participate actively in the company's day-to-day operations or management. This type of partnership arrangement is commonly seen in small businesses or startups where one party provides the necessary financial resources while another party handles the overall management and operations.
The role of a sleeping partner is mainly limited to providing financial investment, typically in the form of initial capital or ongoing funds that help the business thrive and grow. They often share in the profits and losses of the business based on the agreed-upon partnership agreement or contract, but their involvement in decision-making and operational matters is minimal or nonexistent.
Sleeping partners may choose this arrangement for a variety of reasons. They might lack the interest or expertise to actively participate in running the business, preferring to rely on the skills and experience of the managing partner. By investing as a sleeping partner, they can still benefit from the company's success without the burden of day-to-day responsibilities.
It is essential to establish a clear partnership agreement that outlines the rights, liabilities, profit-sharing, and decision-making processes for sleeping partners. This legal document ensures transparency and minimizes the potential for conflicts or misunderstandings between the active and dormant partners.
Overall, a sleeping partner plays a crucial role by providing financial support to the business, while allowing the managing partner to exercise autonomy in making operational decisions.
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One of two or more engaged in a business in which he has embarked capital, but in the conducting of which he does not take an active part.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for SLEEPING PARTNER
- aleeping partner
- zleeping partner
- xleeping partner
- dleeping partner
- eleeping partner
- wleeping partner
- skeeping partner
- speeping partner
- soeeping partner
- slweping partner
- slseping partner
- sldeping partner
- slreping partner
- sl4eping partner
- sl3eping partner
- slewping partner
- slesping partner
- sledping partner
- slerping partner
Etymology of SLEEPING PARTNER
The term "sleeping partner" is derived from the combination of two words: "sleep" and "partner".
The word "sleep" originates from the Old English word "slēpan", which means "to slumber" or "to rest". It has Germanic roots and is related to similar words in other Germanic languages.
The word "partner" comes from the Middle English word "partener", which was formed by combining the words "part" and "ner" (meaning "one who has") with the suffix "-er" denoting a person or thing that performs a specific action. "Part" in this context refers to a share or portion.
When these two words are combined to form "sleeping partner", it refers to a business partner who has invested capital but does not actively participate in the day-to-day operations or management of the business.
Idioms with the word SLEEPING PARTNER
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sleeping partner
A sleeping partner is a silent or inactive partner in a business or endeavor who does not participate in the day-to-day operations or decision-making but still receives a share of the profits.
Similar spelling words for SLEEPING PARTNER
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