1. A, B and C are graduands from University of Nairobi with business administration, accountancy and marketing qualifications respectively. They have registered a company and hoping to commence operations in June next year. They have only managed to raise one third of the required capital i.e., Ksh. 3Million with individual capital contribution of 25% 35% and 40% respectively. Meanwhile B has proposed to deposit the entire capital in Bank Islam so that by the time they start operations they would have at most gained Ksh. 600,000 while the remaining amount shall be obtained from the same bank to be paid in twelve months at a rate of 13%.

1. Advise A, B and C on the possible Shariah compliant contracts the bank would apply to achieve Bs proposal.

2. Briefly discuss the rights and liabilities of A, B and C in

   the event of loss making and the business is ultimately liquidated.