Profit-Making in Islam: Justification and Importance

Mohsin Ali and Najeeb Zada ()
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Mohsin Ali: Taylor’s University
Najeeb Zada: Islamia College Peshawar

Chapter Chapter 4 in The Islamic Finance Trading Framework, 2019, pp 51-59 from Palgrave Macmillan

Abstract: Abstract This chapter discusses profit making in Islam. We also present justification of profit making and why is it an important phenomenon of Islamic trading framework. We argue that in order to construct a well-integrated theory of profit, profit shall be defined revenue minus cost. Secondly, the focal point of the theory shall be a firm instead of an entrepreneur. Additionally, it should be considered as the function of dynamic changes in business environment. Lastly, the profit may be shared between labor and capital in order to endorse fairness, growth, and peace in society. This type of profit theory will be acceptable in both conventional and Islamic trading frameworks.

Keywords: Profit; Firm; Entrepreneur; Labor; Capital (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pcichp:978-3-319-96613-7_4

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DOI: 10.1007/978-3-319-96613-7_4

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