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:

Easement

A non-possessory right to use and/or enter onto the real property of another without owning it.

Course of Performance

Course of Performance refers to the conduct between parties in the execution of a contract that helps to interpret and define the contract's terms.

UCC

Uniform Commercial Code; a comprehensive set of laws governing all commercial transactions in the United States.

Telephone Order

A purchasing or order method whereby buyers place orders for products or services via telephone.