Suppose the original owners provide only 10% of a large project's capital and 90% ultimately comes from public savings through financial institutions. Under a fixed return, savers receive only the predetermined amount even if the project earns exceptional profit.
A genuine profit-sharing arrangement can transmit more of the actual commercial result to those who supplied the capital.
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partnership (مشاركة): Meaning, Purpose and Types
Suppose the original owners provide only 10% of a large project's capital and 90% ultimately comes from public savings through financial institutions. Under a fixed return, savers receive only the predetermined amount even if the project earns exceptional profit.
A genuine profit-sharing arrangement can transmit more of the actual commercial result to those who supplied the capital.