ENTREPRENEURSHIP

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INTRODUCTION TO ENTREPRENEURSHIP

CHARACTERISTICS OF AN ENTREPRENEUR

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Selling of goods on a deferred payment basis at a price which includes a profit margin agreed by both parties. For example, an entrepreneur who plans to buy an assets asks the bank for deferred payment and promises to buy the asset from the bank through resale at mark up price. (instalment)
A
Bai murabahah
B
Bai Bithaman Ajil
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Deferred payment sale is another financing method by which companies deliver specific acquired goods to acounter party, which uses the goods against payments in periodic installments.

Detailed explanation-2: -Musawamah describes a transaction where the price of the good or service is not disclosed to the buyer.

Detailed explanation-3: -Example of Murabaha Bilal would like to buy a boat that sells for $100, 000 from Billy’s Boat Shop. To do so, Bilal would contact a murabaha bank, that would buy the boat from Billy’s Boat Shop for $100, 000 and sell it to Bilal for $109, 000, to be paid in installments over a three year period.

Detailed explanation-4: -Murabahah refers to sale contract where the seller sells the price at profit. In a simple word, Murabahah means cost-plus-profit sale. In a Murabahah transaction, it is a requirement for the seller to inform the buyer, the cost to purchase the asset and the profit that he makes in addition to the cost.

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