Islamiat MCQ #17627

In a Mudaraba contract, how are losses distributed between Rabb-ul-Mal and Mudarib?

Islamiat MCQ #17627

  1. Question 1

    Q1. In a Mudaraba contract, how are losses distributed between Rabb-ul-Mal and Mudarib?

    • A) Losses are borne entirely by the capital provider (Rabb-ul-Mal)
    • B) Losses are shared equally between both parties
    • C) Losses are borne entirely by the Mudarib
    • D) Losses are shared in the same ratio as profits

    Answer: Losses are borne entirely by the capital provider (Rabb-ul-Mal)

    Explanation: In a Mudaraba contract, financial losses are borne entirely by the capital provider (Rabb-ul-Mal), while the Mudarib loses only their time and effort, unless the loss resulted from negligence.