What is SLEEPING PARTNER?

A dormant partner ; one whose name does not appear in the firm, and who takes no active part in the business, but who has an interest in the concern, and shares the profits, and thereby becomes a partner, either absolutely, or as respects third persons.

TLD Example: Each state sets its own rules for conducting business as a limited partnership with many of them prohibiting the sleeping partner from participating in the management of the enterprise

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