CAF-7 · Chapter 8 · Question 1 of 15
In Islamic Finance, an arrangement where one party provides the entire financial capital while the other party provides the expertise and management to run the business is called:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Mudarabah
Explanation
Mudarabah is a partnership in profit where one party provides capital (Rabb-ul-Maal) and the other party provides labor and management expertise (Mudarib).
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