In business when one person provides capital and the other contributes services it is called:
In business when one person provides capital and the other contributes services it is called:
Answer: Mudarabah
Mudarabah is an Islamic finance contract where one partner invests money and the other offers effort or expertise to run the business. Profits are shared as per agreement but losses fall on the investor. This arrangement allows for cooperation without interest aligning with Islamic principles. Other business models exist but Mudarabah uniquely defines this partnership style.
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