profit?When making a profit and remaining true to

profit?When an item
is bought or an activity is performed, the profit is the difference between the
amount of money gained and the amount spent in the process. To make a profit on
a sale, not only must the cost paid originally be exceeded by the selling on,
but that cost plus the costs involved in processing and transporting the
goods and paying the wages of the staff who do it, as well as fixed
costs such as the rent and bills, must exceed the amount of money made by
selling the goods on. Profits are perfectly acceptable in Islam (contrary to a relatively common
belief, which is probably caused by confusing profit with interest, which is forbidden), but there
are rules about the nature of profits. For example, both parties to a deal must
know how large the profits are. Justice and honesty are the foundations of
making a profit and remaining true to the Shariah. Profit is legitimate, but
profiteering is not.

profit and loss sharing (PLS)?An interest-free lending
system using  mudarabah and musharakah as its mechanisms.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

profiteering?Making money
on something that is considered unethical. An example of profiteering would be
raising prices during a time of great shortage such as a natural disaster or a
conflict. Whereas those raising the prices might claim this is simple supply
and demand economics, and legally speaking they would be right, it would still
be seen as immoral, not only by Islamic
communities. Price
fixing, where competitors in an open market agree in secret to
keep prices artificially high (while outwardly pretending to be in
competition), can also be regarded as profiteering.

profit-sharing?An incentive
scheme set up by businesses whereby a proportion of profits the company makes is
divided between its staff members in the form of a bonus over and above their
normal salaries. While it can be an effective way of boosting productivity, it
can lead to bitterness and in-fighting within a company when shirking
individuals receive the same bonus as productive ones. Profit sharing is often
in the form of company shares, where appropriate.

property?Anything
that is owned, be it an object (for example a car) or something intangible such
as the rights to a song (intellectual property). Property is most often used to
describe buildings and the land they are on, but all property is not
necessarily of this type.

prophet?A person who
has been contacted by a god or a messenger of god
(for example, an angel)
with a message to spread around the people. The message they receive is called
a prophecy. Muslims
believe that the word of God was delivered the the Prophet Muhammad or simply the Prophet
(with a capital ‘P’). There are over twenty prophets in Islam, the first of
which was Adam,
and the second to last being Jesus
(Isa). However
they believe that Muhammad was the final prophet before Judgment Day.

x

Hi!
I'm Simon!

Would you like to get a custom essay? How about receiving a customized one?

Check it out