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Islamic Modes of Financing: Mudaraba
Islamic Modes of Financing: Mudaraba
Mudaraba
Summary of the Previous Lecture
We covered the following topics in the previous lecture,
• Profit sharing
• Loss sharing
• Partnership venture
Learning Outcomes
2. Principles of Mudaraba
3. Uses of Mudaraba
Definition
• This is a kind of partnership between the two parties
where one partner contributes capital and the other one
contributes efforts as manager or entrepreneur. The
profit of the venture is share at an agreed ratio while the
losses are borne by the capital provider.
2. Capital
Negligence