A partner who does not play an active role in a business but contributes capital is a
Answer Details
A partner who contributes capital to a business but does not play an active role in the day-to-day operations of the business is known as a dormant partner.
Dormant partners are also called sleeping partners, silent partners, or financial partners. They contribute to the business by investing money or other assets, but they do not participate in the management of the business or make any decisions regarding the business's operations.
Dormant partners are typically not involved in the day-to-day decision-making of the business, and they are not liable for any debts or losses incurred by the business beyond their initial investment. Their involvement in the business is limited to providing financial resources to support the business's growth and development.
In summary, a dormant partner is a partner who provides financial capital to a business but does not participate in the management or decision-making of the business. They are also not liable for the debts or losses of the business beyond their initial investment.