• In partnership (مشاركة), loss follows each partner's investment ratio.
• In investment partnership (مضاربة), genuine financial loss falls on the capital provider (رب المال) because he supplied the capital.
• The managing partner (مضارب) loses his time and effort because his work produced no profit.
• This rule assumes the managing partner (مضارب) acted with proper care.
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Who Bears a Genuine Loss?
investment partnership (مضاربة): The Basic Structure
• In partnership (مشاركة), loss follows each partner's investment ratio.
• In investment partnership (مضاربة), genuine financial loss falls on the capital provider (رب المال) because he supplied the capital.
• The managing partner (مضارب) loses his time and effort because his work produced no profit.
• This rule assumes the managing partner (مضارب) acted with proper care.