Definition: is a business partner, which is involved with a company or a business by making financial investments but does not participate in business operations. A sleeping partner receives the profit of a company and shares the possible financial and legal risks. However, a sleeping partner is not involved in the daily processes and operations of the business, thus he or she does not make any management-related decisions. Typically, the name of a sleeping partner and the contribution he or she made to a company are not publicly known.
In a Sentence:
I have decided to become a sleeping partner of this firm. This will give me a chance to expand my investments.
Being a sleeping partner doesn’t require too much from you. However, you still will be facing the financial risks in case of a crash of the business.
Mr. Jones is a sleeping partner. He does not have a say in the daily operations and decisions.
Synonyms and related words: limited partner, secret partner, silent partner, general partner, business partner, financial investment