Influence of Shar'ia Law on business Flashcards
1
Q
The 5 pillars….
A
must be satisfied in order to live a good and responsible life.
2
Q
Interest (Riba) and uncertainty or chance (Gharar)
A
considered as illegal as they are regarded as usury
3
Q
Riba…
A
is forbidden in financial activities
4
Q
Mudharabah is the idea of borrowing being replaced by that of a joint operation:
A
- Both parties share the risk of the operation
- Investors receive compensation for participation and losses will be shared
- Share profit
5
Q
Takaful
A
Guaranteeing each other
6
Q
Mutual insurance funds…
A
are based on the idea of tubarru (gift)
