MCQ Bank

In Musharakah, profits are distributed according to a mutually agreed ratio decided by the partners at the time of agreement. It is not necessarily based on capital contribution or equal shares.

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Q35

Ownership of benefits of a physical item is………………..

A) Incremental with time always
B) Decremental with time always
C) Time bound
D) Not time bound

AI Explanation

The ownership of benefits or usufruct of a physical item is generally limited by time because benefits are consumed or reduced through use. Unlike ownership of the physical asset itself, benefits do not continue indefinitely.

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Q36

Which of the following type of spending is not allowed in Islam?

A) Lottery
B) Health
C) Cloth
D) Food

AI Explanation

Lottery involves gambling and is not considered permissible spending in Islam. Spending on necessities such as health, clothing, and food is allowed.

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Q37

Islamic Financial law is termed as………………….

A) Fiqh-ul-Muammalat
B) Fiqh-ul-Ibadah
C) Fiqh-ul-Hanfiah
D) Fiqh-ul-Jaffariah

AI Explanation

Islamic financial law is known as Fiqh-ul-Muammalat, which deals with transactions, contracts, and commercial dealings. Fiqh-ul-Ibadah relates to acts of worship rather than financial matters.

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Q38

In a Musharakah business the loss is shared among partners as per…………………..

A) On the basis of hours worked by each partner
B) Capital contribution made by each partner
C) Specific ratio decided by partners
D) Equal share to each partner

AI Explanation

In Musharakah, losses are shared according to the proportion of capital contributed by each partner. Profit, however, can be distributed according to a mutually agreed ratio.

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Q39

Which of the following is not a condition for Shirakat-ul-Mufawadah?

A) The capital investment of the parties should not be equal
B) The capital investment of the parties should be equal
C) All parties should be of sound mind, adult and free
D) Each party should represent the other

AI Explanation

In Shirakat-ul-Mufawadah, equality of capital contribution is one of the required conditions. Therefore, stating that capital investment should not be equal is not a valid condition.

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Q40

Immediate payment of price but delivery of subject matter will take place later on is called……………….

A) Spot price sale
B) Advance sale
C) Deferred price sale
D) Future sale

AI Explanation

When the price is paid immediately but the delivery of the subject matter is postponed, it is considered a future sale arrangement. The payment and delivery occur at different times.

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Q41

Which of the following is not a condition of Musharakah?

A) Maturity of the partners
B) Sound Mind
C) Mutual Agreement
D) Rural Land

AI Explanation

Musharakah requires partners to have maturity, sound mind, and mutual agreement to establish a valid partnership. Rural land is not a necessary condition for Musharakah.

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Q42

Which of the following is a necessary condition with respect to “subject matter” in a contract?

A) Existence
B) Lawfulness
C) All of the given options
D) Ability to Deliver

AI Explanation

A valid subject matter in a contract must exist, be lawful, and be capable of delivery. Therefore, all the listed conditions are necessary.

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Q43

The real owner of a gift given to child is…………….

A) Friend of child
B) Relatives of child
C) Child himself/herself
D) Parents of child

AI Explanation

In Islamic law, a gift given to a child becomes the property of the child. The child is considered the real owner even if a guardian manages the property.

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Q44

In Shirkat-ul-Mufawadah, which of the following element is shared equally among all partners?

A) All of the given options
B) Capital
C) Profit and loss
D) Management

AI Explanation

In Shirkat-ul-Mufawadah, equality is maintained among partners in capital, profit and loss arrangements, and management rights. Therefore, all the given options are shared equally.

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Q45

In which mode two or more partners share capital to do business?

A) Sole Proprietorship
B) Mudarbah
C) Rental arrangement
D) Musharkah

AI Explanation

Musharakah is a partnership mode in which two or more partners contribute capital and participate in business activities. The partners share profits and losses according to agreed rules.

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Q46

With regards to payment of price sale has ……………. types:

A) Six
B) Four
C) Eight
D) Two

AI Explanation

With regard to payment of price, sales are generally divided into two types: spot payment and deferred payment. This classification is based on when the price is paid in relation to the transaction.

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Q47

Which of the following nullifies the offer and acceptance between the parties?

A) Unnatural gap
B) Natural gap
C) All of the given options
D) Generation gap

AI Explanation

An unnatural gap between offer and acceptance can invalidate a contract because it breaks the continuity required for a valid agreement. A natural gap, such as a brief pause for consideration, does not necessarily nullify the contract.

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Q48

Which of the following is not an example of a compensatory contract?

A) Employment
B) Leasing
C) Trade
D) Inheritance

AI Explanation

Compensatory contracts involve an exchange of consideration, such as employment, leasing, or trade. Inheritance is a non-compensatory transfer because it does not involve an exchange.

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Q49

Which of the following is an essential of ownership of something?

A) Legal possession
B) Right of use
C) Authority of disposal
D) All of the given options

AI Explanation

Ownership includes legal possession, the right to use the owned item, and authority to dispose of it. Therefore, all the listed options are essential elements of ownership.

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Q50

Income derived from the manufacture, purchase or sale of wine and is:

A) Appreciated
B) Halal
C) Haram
D) Disliked

AI Explanation

Income derived from the manufacture, purchase, or sale of wine is prohibited in Islam because wine is considered haram. Earnings from prohibited activities are therefore not permissible.

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Q51

Under a Muzarrah arrangement, the period of cultivation…………….

A) Must be indefinite
B) Must be decided by the Qazi
C) Must be left on the conditions of weather
D) Must be specified

AI Explanation

In a Muzarrah arrangement, the period of cultivation should be clearly specified to avoid uncertainty between the parties. This helps establish a valid agricultural partnership.

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Q52

Islam has posed prohibition -----------------------.

A) To waste wealth
B) To accumulate wealth
C) To acquire wealth
D) To distribute wealth

AI Explanation

Islam prohibits wasteful use of wealth and encourages responsible spending and utilization of resources. Wealth should be acquired and managed through lawful and beneficial means.

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Q53

Under a Musharakah, the working capacity of the partners…………...........

A) Decreases
B) Is doubled
C) Increases
D) Is tripled

AI Explanation

Under Musharakah, partners combine their resources and efforts, which can increase the overall working capacity of the business. Cooperation among partners strengthens the enterprise.