LessonsCombining partnership (مشاركة) and investment partnership (مضاربة)Quiz

• The other partner may purchase the financier's share at an agreed price.
• The share may also be sold to another person who replaces him.
• If one-time purchase is difficult, the share can be divided into smaller units.
• Units may be sold gradually until the financier exits completely.

Keeping the legal roles clear prevents the arrangement from being treated like a fixed-return loan. Capital, management, ownership and profit entitlement should each follow the role actually undertaken.

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How the Financier Can Exit

Combining partnership (مشاركة) and investment partnership (مضاربة)

• The other partner may purchase the financier's share at an agreed price.
• The share may also be sold to another person who replaces him.
• If one-time purchase is difficult, the share can be divided into smaller units.
• Units may be sold gradually until the financier exits completely.

Keeping the legal roles clear prevents the arrangement from being treated like a fixed-return loan. Capital, management, ownership and profit entitlement should each follow the role actually undertaken.