Q: What is the basic concept of Musharka and Mudarba?
Ans: Islam defines Musharka as under:
“Musharka (partnership) refers to the business or trade activity which is undertaken by the partners on the basis of provision of capital and labour and to share the profits according to the pre-determined conditions.
The scholars of Islam have defined Mudarbat as under:
1. Mudarbat has been divided in the volume 13 of `Aimul Hidaya’ that:
‘The meaning of ZARB 01, ARD is to walk on land and a Zarib (Laborer), with trading goods walk within or outside the country and earns profits through this labour. This activity of the laborer is called Mudarba”.