5 Questions
Which partner in a mudarabah is responsible for providing the investment?
The rabb-ul-mal
In a musharakah partnership, who can participate in the management of the business?
Both partners
Who is responsible for the management and work in a mudarabah partnership?
The mudarib
Who shares the loss in a musharakah partnership?
Both partners
Who bears the loss in a mudarabah partnership?
Only the rabb-ul-mal
Study Notes
Islamic Finance Partnerships
Mudarabah Partnership
- The investor (rabb-ul-mal) provides the investment in a mudarabah partnership.
- The mudarib (managing partner) is responsible for the management and work in a mudarabah partnership.
- The loss is borne by the investor (rabb-ul-mal) in a mudarabah partnership.
Musharakah Partnership
- All partners can participate in the management of the business in a musharakah partnership.
- Losses are shared by all partners in a musharakah partnership.
Test your knowledge on Mudarabah and understand the key differences between Mudarabah and Musharakah in this informative quiz. Explore the roles of "rabb-ul-mal" and "mudarib" in this unique partnership and enhance your understanding of Islamic finance.
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