What is the role of a silent partner in business?
A silent partner is somebody who invests, usually large amounts, in a business without taking part in the administration or running of the business. They are often referred to as sleeping partners and there are many reasons people may choose this route.Conflict of InterestOne of the main reasons people choose a silent partnership is to avoid a conflict of interest. This will prevent their name from publicly being recognized as an investor in a particular business.Financial SecrecyAccording to QandAs.com, one reason people choose to become silent partners is to keep their financial status a secret from the public. This way they can “namelessly” invest in a business.Personal InvestmentQandAs.com claims many people become silent partners to friends and family for personal reasons. While profit may not be the only interest on a personal level, these people often just want to help out those close to them.Financial GainOne of the biggest reasons people become silent partners is for the poten
