Multiple Choice
Which of the following statements holds true for "mudarabah," an investment partnership approved by the Sharia?
A) It refers to a partnership in which one partner takes part in financial practices like charging interest on money, speculation, insurance, and derivatives.
B) It refers to a partnership that allows a special partner whose name does not appear in that of the firm, to invest a limited amount of capital and to receive a corresponding share of the profits and to bear any corresponding losses.
C) It refers to a partnership in which 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 whereby 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 according to an agreed-upon ratio and losses are shared in proportion to the capital or investment of each partner.
Correct Answer:

Verified
Correct Answer:
Verified
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