An investor in a partnership who is not directly involved in the daily activities of the business; also known as a sleeping partner.

• A. Limited partner
• B. Active partner
• C. Silent partner
• D. Associate partner

Answer: (C)

In this scenario, the key idea is that someone can invest capital in a partnership without taking part in daily operations. This person stays hands-off while the business is run by others. That description fits the term silent partner (also known as a sleeping partner) precisely, because the partner is financially involved but not active in management or decision-making.

Active partner would be the one who does participate in running the business, which contradicts the description. A limited partner refers to a liability structure in some partnerships and may not manage, but the common label tied to someone who is not involved in daily activities is silent partner. An associate partner isn’t the standard term used to describe this role in a typical partnership context.

So the term that best matches “investor not directly involved in daily activities” and is synonymous with sleeping partner is silent partner.