Pakistan's best MCQs practice hub — FPSC · PPSC · CSS · NTS · Other Exams
Login

What is the term for Islamic finance profit-sharing partnerships, where one party provides capital and the other provides expertise?

AMurabaha
BIjarah
CMudarabah
DMusharakah

Explanation

– Mudarabah refers to an Islamic finance partnership structure in which one party provides capital while the other contributes expertise and management, with profits shared according to a pre-agreed ratio.
– Losses in this arrangement, unless due to negligence, are generally borne solely by the capital-providing party, distinguishing it from conventional loan-based financing.
– For exams, note that Musharakah differs slightly, referring to a joint partnership where both parties contribute capital and share both profit and loss proportionally.

Exam Relevance
  • Topic: Contemporary Issues
  • Subtopic: Islamic Banking
Submitted by: mcqstutor Team More Islamic Studies MCQs →

No Comments

Leave a comment

Your email address will not be published. Required fields are marked *