3.2. Assume you worked as the CEO in Zaid Ibrahim & Co, one of the leading...

 

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3.2. Assume you worked as the CEO in Zaid Ibrahim & Co, one of the leading law firms in Kuala Lumpur, Malaysia over the past ten years. You are looking for another potential partner and plan to run a new law firm together with him/her following Islamic principles. You will manage the law firm yourself once it is established and provide service to cases that are related to banking & finance, corporate/M&A or intellectual property. You require funding today of 5 million Malaysia ringgit to start the business but prefer not to invest your own money into the law firm. You don't mind sharing profits with other parties. Among the nine major types of Islamic financing listed below, how would you finance your business? Please explain. 1. Advanced payment scale (bai salam) 2. Stated Cost plus Profit (Murabahah) 3. Goodwill Loan (Qard Hassan) 4. Hire Purchase (Ijarah Thumma Al Bai') 5. Joint Venture (Musharakah) 6. Leasing (Ijarah) 7. Profit Sharing (Mudharabah) 8. Safekeeping (Wadiah) 9. Sale and Buyback (Bai' Al-Inah) [10 marks] 3.2. Assume you worked as the CEO in Zaid Ibrahim & Co, one of the leading law firms in Kuala Lumpur, Malaysia over the past ten years. You are looking for another potential partner and plan to run a new law firm together with him/her following Islamic principles. You will manage the law firm yourself once it is established and provide service to cases that are related to banking & finance, corporate/M&A or intellectual property. You require funding today of 5 million Malaysia ringgit to start the business but prefer not to invest your own money into the law firm. You don't mind sharing profits with other parties. Among the nine major types of Islamic financing listed below, how would you finance your business? Please explain. 1. Advanced payment scale (bai salam) 2. Stated Cost plus Profit (Murabahah) 3. Goodwill Loan (Qard Hassan) 4. Hire Purchase (Ijarah Thumma Al Bai') 5. Joint Venture (Musharakah) 6. Leasing (Ijarah) 7. Profit Sharing (Mudharabah) 8. Safekeeping (Wadiah) 9. Sale and Buyback (Bai' Al-Inah) [10 marks]

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I would finance my business with a joint venture musharakah In a joint venture two or more parties a... View the full answer