A Mudarabah Contract Differs from a Musharakah Contact in Several

question 15

Multiple Choice

A Mudarabah contract differs from a Musharakah contact in several ways.Which of the following is not true in respect of the two forms of contract?

• A)In Musharakah all the partners to the contract provide investment capital,whilst in Mudarabah one party provides all the investment capital to another.
• B)In Musharakah all parties to the contract can provide management services to the enterprise,in Mudarabah the management is the responsibility of the entrepreneur receiving the capital.
• C)In Musharakah the goods are owned by the provider of the capital alone,whilst in Mudarabah the assets are jointly owned by all partners to the contract in relation to the proportion of their investment.
• D)In Musharakah the partners liability is essentially unlimited,whilst in Mudarabah the liability of the provider of the capital is limited to their original investment.

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Definitions:

Critical Behaviors

Essential actions performed by individuals that significantly impact outcomes in specific contexts.

Key Performance Indicators

Quantifiable measures used to evaluate the success of an organization, employee, or project in meeting objectives for performance.

Critical Behaviors

Actions or practices considered crucial for achieving specific outcomes or maintaining certain standards within an organization or process.

Strategic Objectives

Goals set by an organization to guide its strategic direction, focusing on long-term achievements that contribute to its overall mission.