Who invests only capital in A partnership?

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1222195

2026-07-30 08:10

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In a partnership, an investor who contributes only capital is typically referred to as a "silent partner" or "limited partner." These individuals provide financial resources but do not participate in the day-to-day management or decision-making of the business. Their liability is often limited to the amount of their investment, protecting them from personal liability for the partnership's debts beyond their contributed capital. This arrangement allows them to benefit from the partnership's profits without being actively involved in its operations.

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