Which of the following statements holds true for "musharakah," an investment partnership approved by the Sharia?
A) It refers to a partnership in which the investor provides capital to another party or entrepreneur in order to undertake a business or investment activity.
B) It refers to a partnership which allows a special partner, whose name does not appear in that of the firm, to put in a limited amount of capital and to receive a corresponding share of the profits.
C) It refers to a partnership, wherein the profits are shared on an agreed-upon ratio but the loss of investment is borne only by the investor.
D) It refers to a partnership wherein the individuals agree to share the profits and losses together without fixing any limitations or conditions.
E) It refers to a partnership wherein profits are shared per an agreed-upon ratio and losses are shared in proportion to the capital or investment of each partner.
Correct Answer:
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