Question

1. Which of the following is the most appropriate definition of Musharaka?
   1. Musharaka is a deferred payment sales contract of an item
   2. Musharaka is an advance payment sales contract of an item
   3. Musharaka is a partnership between two or more parties, all contribute capital but only one party can manage the venture
   4. Musharaka is a partnership between two or more parties, all contribute capital and can manage the venture
2. Inan Musharaka is a partnership with:
   1. One partner providing the entire capital
   2. Unlimited liability
   3. Limited liability
   4. Equal capital contribution

Answer 1

Musharakah is a joint partnership arrangement in Islamic finance in which profits and losses are shared.

Profits from interests are not permitted in Islamic practice, necessitating the need for musharakah

A permanent musharakah is often used for long term financing needs since it has no specific end date and continues until the partners decide to dissolve it.

According to the given explanation, the given option will be suitable.

1. Musharaka is a partnership between two or more parties, all contribute capital and can manage the venture