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:

Structural Differentiation

Structural differentiation is the process through which an organization becomes more complex by dividing and specializing its functions and roles.

Role Ambiguities

The uncertainty or lack of clarity about the expectations, responsibilities, or duties associated with a particular role.

Resource Scarcities

A situation where there is an insufficient availability of resources to meet the demands of a population.

Win-lose Competition

A competitive situation where one party's gain is directly proportional to another party's loss.