 ‘Mudarabah’, the Profit-sharing System in IslamMasudul Alam Choudhury and
Uzir Abdul Malik
Chapter 5 in The Foundations of Islamic Political Economy, 1992, pp 147-200 from Palgrave Macmillan Abstract: Abstract The term ‘mudarabah’ stands for the form of profit-sharing enterprise in the Islamic economic system. It has two principal characteristics. First, the enterprise works on the basis of share capital among a large number of shareholders from various sectors of the economy. Secondly, the profit-sharing enterprise is based on economic cooperation wherein participants undertake joint ventures and cofinance economic projects. The essence of economic cooperation is shown in the sharing of total investments through capital and other visible or invisible assets like allocation of time. All such endowments, no matter how large or how small, on the part of individual shareholders entitle them to equal voting and decision making rights in the enterprise. However, the total profits are shared in proportion to their individual shares in investment. Keywords: Wage Labour; Profit Share; Related Investment; Profit Rate; Productive Investment (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-21973-5_5 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-21973-5_5 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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