PRC-3 · Chapter 2 · Question 20 of 61
In a partnership, one specific partner provides capital but does not participate in the active management of the firm, and their liability is restricted. What is this partner called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Silent or Limited partner
Explanation
A limited (or silent) partner contributes capital and enjoys limited liability but is legally barred from participating in the daily management of the business.
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