Jibran sets up a pharmaceutical factory with his friend Faisal with the name of 'The Medics' by renting out a piece of land at Korangi Industrial Area, Karachi. Jibran is the main sponsor and CEO of the factory. Profit ratio between Jibran and Faisal is 70:30 while Faisal will also be drawing salary of PKR 200,000/- for the specialized role of Factory Manager supervising the entire production unit. The factory produces various tablets, capsules and syrups. The factory purchases chemicals from the market and converts it into the end product through a mechanical process. Thereafter, packaging is performed where tablets are sealed in the form of strips while capsules and syrups are packed in plastic bottles. The plastic bottles are purchased from the market in raw form and undergo a heating and shaping process before ready for packing. The factory has 5 capsule manufacturing machines, 3 tablet producing machines and 2 syrup making machines. To run the factory, Jibran has purchased a heavy-duty generator which is powered by Diesel, whose price is regulated i.e. fixed by the government and is not negotiable. However, other raw material for medicines is purchased from local as well as international suppliers and is negotiable through mutual consent and has an established free market (based on demand / supply). Jibran has also taken a loan of PKR 1,000,000/- from United Bank Ltd. which has been partially used for purchasing some manufacturing machines and partially used for other business expenses. The loan carries a fixed interest rate of 12.00% per year and has to be repaid in 1 year. At the end of every month, the wealth earned through the sale of medicines is distributed among the factors who have taken part in producing it. Jibran meets his old school friend Wasim on a dinner who is an Islamic Banker by profession. Jibran offers Wasim to join his business as a partner which Wasim accepts as he was also looking for some good investment opportunity as a side business in addition to his job. 12 Marks a) What is the legal status of The Medics? Is the factory a sole proprietorship or partnership or a company? Justify your answer (2) b) Under which Economic System is The Medics operating? Justify your answer (2) c) What relationship Faisal has with The Medics? Is the same Shariah Compliant? Justify (2) d) What will be the contract between Jibran and Wasim? Shirkat-ul-Aqd or Shirkat-ul-Melk? Why? (2) e) After identifying the economic system, mention the factors of production accordingly in the above case and justify. (4)