a very brief of legitimacy of islamic product in Malaysia

Essay specific features

 

Issue:

Business

 

Written by:

Jenna M

 

Date added:

July 31, 2012

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 330

 

Was viewed:

3869 times

 

Rating of current essay:

 
Essay content:

As wadiah is a trust, the depository becomes the guarantor and, therefore guarantees repayment of the whole amount of the deposits, or any part thereof, outstanding in the account of depositors, when demanded. The depositors are not entitled to any share of the profits but the depository may provide returns to the depositors as a token of appreciation...
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If we further study these concepts, we will find out that they do not involve any Riba but they provide rewards and profit sharing as return, for instance, Mudarabah. Mudarabah refers to an agreement made between a capital provider and another party (entrepreneur), to enable the entrepreneur to carry out business projects, based on a profit sharing basis, of a pre-agreed ratio...
displayed 300 characters

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