Question 2

1. What is Musharakah financing? Give one (1) example. (4 marks)

2. Explain two (2) rights of partners in Musharakah. (5 marks)

c) Omar and Osman set up a Inan partnership in January 2020. Both partners brought the capital of RM 80,000 and RM 60,000 respectively. The profit earned for the first year was RM 50,000.

1. Calculate the profit gained to partners, if the profit sharing ratio agreed was 2/3 to Omar and 1/3 to Osman? (2 marks)
2. What would be their share of profit, if the new ratio is 4:3 and the profit is RM 70,000? (2 marks)
3. There is a loss of RM18,000 in the second year. The agreed ratio for sharing their losses is 2:1. How is the loss distributed among the partners?

(2 marks)

4. If both partners invite Adam to become the third partner, he will be offered a fixed return of RM 2000 annually. Is this allowed in Islam? Why?

(2 marks)