5.Bank Al-Islami enters into a Mudhrabah contract with Mr. Sultan, where the bank agrees to provide the full capital required for the enterprise. However, as part of the terms of the contract, the Bank contributes 70% of the capital in cash for the enterprise and the remaining 30% will be sourced from an existing debt from a third party. Is this contract valid? Please elaborate.

5.Bank Al-Islami enters into a Mudhrabah contract with Mr. Sultan, where the bank agrees to provide the full capital required for the enterprise. However, as part of the terms of the contract, the Bank contributes 70% of the capital in cash for the enterprise and the remaining 30% will be sourced from an existing debt from a third party. Is this contract valid? Please elaborate.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 16P

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