Which of the Following Statements Holds True for "Musharakah," an Investment

question 45

Multiple Choice

Which of the following statements holds true for "musharakah," an investment partnership approved by the Sharia?

• A)It refers to a partnership in which the investor provides capital to another party or entrepreneur in order to undertake a business or investment activity.
• B)It refers to a partnership which allows a special partner, whose name does not appear in that of the firm, to put in a limited amount of capital and to receive a corresponding share of the profits.
• C)It refers to a partnership, wherein the profits are shared on an agreed-upon ratio but the loss of investment is borne only by the investor.
• D)It refers to a partnership wherein the individuals agree to share the profits and losses together without fixing any limitations or conditions.
• E)It refers to a partnership wherein profits are shared per an agreed-upon ratio and losses are shared in proportion to the capital or investment of each partner.

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Definitions:

Causal Analysis

The process of identifying and evaluating the factors that cause or contribute to a specific outcome or condition.

Attribution

The process of explaining one’s own behavior and the behavior of others.

Basic Necessities

Fundamental needs required for sustaining human life, including food, water, shelter, and clothing.

Poverty

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.