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Questions and Answers
Which type of partnership allows partners to benefit from the appreciation in the value of assets, even if profit has not been made through sales?
Which type of partnership allows partners to benefit from the appreciation in the value of assets, even if profit has not been made through sales?
- Musharakah (correct)
- Limited partnership
- Mudarabah
- Joint venture
In musharakah, how are the assets of the partnership owned?
In musharakah, how are the assets of the partnership owned?
- Owned by the mudarib
- Owned based on the proportion of profit earned
- Solely owned by the rabb-ul-mal
- Jointly owned by all partners (correct)
In mudarabah, who solely owns the goods purchased?
In mudarabah, who solely owns the goods purchased?
- Partners jointly
- Based on the proportion of profit earned
- Mudarib
- Rabb-ul-mal (correct)
How can the mudarib earn their share of profit in mudarabah?
How can the mudarib earn their share of profit in mudarabah?
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Can the mudarib claim their share in the assets themselves in mudarabah?
Can the mudarib claim their share in the assets themselves in mudarabah?
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Study Notes
Partnership Types
- A partnership that allows partners to benefit from the appreciation in the value of assets, even if profit has not been made through sales, is a type of musharakah partnership.
Ownership in Musharakah
- In musharakah, assets of the partnership are owned jointly by all partners.
Ownership in Mudarabah
- In mudarabah, the owner of the capital (rabb-ul-mal) solely owns the goods purchased.
Earning Profit in Mudarabah
- The mudarib (manager) earns their share of profit in mudarabah by managing the goods or business and generating profit.
Mudarib's Share in Mudarabah
- The mudarib cannot claim their share in the assets themselves in mudarabah; they only earn a share of the profit generated.
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Description
Test your knowledge on the differences between musharakah and mudarabah in Islamic finance. Learn about how assets are owned, distributed profits, and more in this informative quiz.
