The First Step in Analysing the Feasibility of Possible Ventures

question 13

Multiple Choice

The first step in analysing the feasibility of possible ventures is that Islamic venture fund:

• A) conduct a project feasibility analysis similar to the conventional venture capital fund
• B) test the soundness of the business plan
• C) perform Sharī'ah-compliance screening
• D) none of the above

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Definitions:

Simple Interest

Interest earned or paid that is not compounded, and is based only on the principal amount.

Rate of Interest

The percentage of an amount of money which is charged for its use per period, often annually.

Future Value

The future valuation of an asset or cash that has the same worth as a particular sum at present.

Present Value

Today's value of a future financial amount or series of cash disbursements, based on an agreed-upon rate of return.