Monday, September 1, 2014

What is mudharaba financing?

What is mudharaba financing?
Mudharaba is a partnership where one partner gives money to another for investing in a commercial enterprise while the other utilizes his or her business skills. The profits generated are shared in a ratio by mutual agreement. But the loss, if any, is borne only by the owner of the capital, in which case the entrepreneur gets nothing for his labour.

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