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  • Islamic Mode of Financing

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    Zulfiqar Ali
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    Musharaka is an Islamic financing method where two or more parties contribute capital to a business and share profits and losses proportionate to their contributions. It allows one party to be the financier and another the manager of the jointly owned business, with profits distributed according to a pre-agreed ratio and losses shared based on capital shares.

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    Musharaka is an Islamic financing method where two or more parties contribute capital to a business and share profits and losses proportionate to their contributions. It allows one party to be the financier and another the manager of the jointly owned business, with profits distributed according to a pre-agreed ratio and losses shared based on capital shares.

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    1 views4 pages

    Islamic Mode of Financing

    Uploaded by

    Zulfiqar Ali
    Musharaka is an Islamic financing method where two or more parties contribute capital to a business and share profits and losses proportionate to their contributions. It allows one party to be the financier and another the manager of the jointly owned business, with profits distributed according to a pre-agreed ratio and losses shared based on capital shares.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 4

    Islamic Mode of Financing

    Subject: Banking and Public Finance


    5th Semester
    Islamic Modes Of Financing
    1. Musharaka
    2. Mudarabah
    3. Ijarah
    4. Murabaha
    Musharaka
    • Musharaka means a relationship established under a contract by the
    mutual consent of the parties for sharing of profits and losses arising
    from a joint business.
    • Investments come from all partners/shareholders.
    • Profits shall be distributed in the proportion mutually agreed in the
    contract.
    • Losses are shared by all partners in proportion to their capital
    • Individual B has excess funds and wishes to be the financier in
    musharakah with A. The two people would come to an agreement to
    the terms and begin a business in which both share a portion of the
    profits and losses.

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