Partnerships

Partners sharing profits in a partnership

Question: Determining Share Percentage in an Islamic Partnership: In a traditional company or partnership, a partner's share percentage is often determined by the ratio of their initial investment to the total investments of all partners. Is this principle applicable...

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Dental partnership agreement

Question:- Dentist 'A' goes into a 50% partnership with dentist 'B'. Dentist 'A' will run the practice and earn 30% of total turnover (before expenses). Thereafter, the nett profit will be shared equally between the 2 partners. Is the above arrangement permissible?...

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Diminishing partnership

Question:- What is a diminishing partnership in terms of Shariah and how is it enacted? Answer:- The method of enacting a diminishing partnership is as follows: Zaid wants to purchase a house and only has 50% of the funds required to purchase it. He therefore requests...

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