Commandite

/kɒˈmændaɪt/ noun

Definition

A type of business partnership, mainly historical in France, where some partners invest capital but don't participate in management.

Etymology

From French 'commandite,' derived from 'commande' (an order or command), referring to the capital placed at the command of the business. It's a specialized commercial law term.

Kelly Says

The commandite structure is the ancestor of modern limited partnerships and venture capital investing—it solved the problem of letting wealthy people invest money without having to actually run the business.

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