4 Questions
In Mudarabah, who is the partner of Rabb-ul-maal and shares the profit in an agreed ratio?
Shareek
Who is liable to compensate the loss if the enterprise suffers a loss due to negligence or misconduct?
Wakeel
The money given by Rabbul-maal (investor) and the assets required therewith are held by him as a trust. Who is 'him' in this context?
Zamin
What is the term for an unrestricted Mudarabah where the Rab-ul-Maal does not specify a particular business or place for the Mudarib to invest the money?
Unrestricted Mudarabah
Study Notes
Mudarabah Partnership
- In Mudarabah, the partner of Rabb-ul-maal (investor) is the Mudarib, who shares the profit in an agreed ratio.
Liability for Loss
- If the enterprise suffers a loss due to negligence or misconduct, the Mudarib is liable to compensate the loss.
Trustee of Assets
- In a Mudarabah partnership, 'him' refers to the Mudarib, who holds the money given by Rabbul-maal and the required assets as a trust.
Unrestricted Mudarabah
- An unrestricted Mudarabah is a type of Mudarabah where the Rab-ul-Maal does not specify a particular business or place for the Mudarib to invest the money.
Test your knowledge of Islamic finance principles with this quiz. Answer questions about the roles and responsibilities of Wakeel, Zamin, Shareek, and Ameen in financial transactions.
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