Multiple Choice Questions (Select an appropriate choice) 1. Holders of Shirakah

Question

Multiple Choice Questions (Select an appropriate choice) 1. Holders of Shirakah Sukuk (Marks 10) (a) (b) (c) (d) own the firm receive interest payments receive guaranteed income have loaned money to the firm 2. One of the primary objectives of Islam (maqasid al- shari'ah) in the context of financial market (a) increase the inequalities of inconme 1 (b) (c) (d) reduce the employment level increase the poverty risk sharing by the financier Rate of profit is (a) (b) (c) 3. only known ex-post changing daily like the rate of interest predetermined none of the above (d)

Explanation / Answer

The Shirakah investors are those who invest in the capital of the firm and bear all the risk in return for a share in the profits of the firm. Its the Islamic Financing equivalent of equity investments.

Thus, the correct answer here would Option (a).

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