commenda Definition
a type of business partnership in which one partner provides the capital while the other provides labor and management, and they share profits according to a prearranged ratio.
Using commenda: Examples
Take a moment to familiarize yourself with how "commenda" can be used in various situations through the following examples!
Example
The commenda was a common form of business organization in medieval Europe.
Example
In a commenda, the managing partner is responsible for the day-to-day operations of the business.
commenda Synonyms and Antonyms
Synonyms for commenda
- silent partnership
- equity partnership
Phrases with commenda
a type of commenda in which the managing partner actively participates in the business operations
Example
In an active commenda, the managing partner is responsible for the day-to-day operations of the business.
a type of commenda in which the managing partner has limited liability and is not responsible for the debts of the business
Example
In a simple commenda, the managing partner has limited liability and is not responsible for the debts of the business.
a type of commenda in which two or more partners provide capital and share profits according to a prearranged ratio
Example
In a joint commenda, two or more partners provide capital and share profits according to a prearranged ratio.
Origins of commenda
from Italian 'commendare', meaning 'to entrust'
Summary: commenda in Brief
The term 'commenda' [kuh-men-duh] refers to a type of business partnership in which one partner provides the capital while the other provides labor and management, and they share profits according to a prearranged ratio. It was a common form of business organization in medieval Europe, and can be classified into types such as active commenda, simple commenda, and joint commenda.
