Difference between a silent partner and general partner

Do you own a business? I’ve a company but not really active as I’m still salaryman and don’t have time to run business consistenly.
My company just put a money in Wealth Management. Not much money but I hope I could increase the amount and invest into another high profit investment.

Back to the title, the business always have partners whethet it is silent or general. Do you really know what the difference between silent and general partners? Let’s read this explaination by Investopedia.com

Silent Partners

limited-liability-partnership

Within a partnership, a silent partner is any individual who provides funding to the business as his only contribution. Also referred to as a limited partner, a silent partner has less exposure to liability because he does not participate in the day-to-day operations of the business. Instead, a silent partner provides capital to the company when needed as he is able, and his losses are limited to the amount he has contributed. In some cases, a silent partner acts as a consultant to the general partners, offering advice on the running of the business when solicited.

General Partners

men-shaking-hands

A general partner is the individual or group of individuals in a business partnership with control over the management, operations and use of capital within the company. General partners in a business can act on behalf of the company, and as such have unlimited liability exposure. If the business goes under, a general partner may have his personal assets seized or liquidated to satisfy debts of the business.

Source :Investopedia

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Leave a Reply

Your email address will not be published. Required fields are marked *