MCQ Bank

Non-monetary exchanges include goods for goods, goods for services, and services for services. All of these can occur through contractual arrangements without direct monetary exchange.

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Q55

Under a Musharkah arrangement, capital should be contributed by all the partners and rate of profit or loss sharing should be…………………..

A) In equal proportion
B) Determined after earnings
C) As per proportionate to capital
D) Pre-determined

AI Explanation

In Musharakah, the profit-sharing ratio must be agreed upon and determined before entering into the partnership. Losses, however, are generally shared according to the capital contribution of the partners.

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Q56

To live in the world every person has different demands and needs which require its fulfillment in the legal way as described by following which is very important for the smooth functioning of the society.

A) Society
B) Scholars
C) Shariah
D) Islam

AI Explanation

Shariah provides the legal and ethical framework that guides people in fulfilling their needs and conducting social and economic activities. It helps ensure the smooth functioning of society according to Islamic principles.

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Q57

Which of the following is the main element of ownership of physical items?

A) Not time bound
B) Time bound
C) Diminished with time
D) None of the given options

AI Explanation

Ownership of a physical item is generally permanent and not restricted by time. The owner retains rights over the property unless it is transferred or disposed of legally.

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Q58

A person can transfer his property to another by the following method:

A) All of the given options
B) By Hiba
C) By Will
D) By Sale

AI Explanation

A person can transfer property through various lawful methods, including Hiba (gift), Will (bequest), and Sale. Therefore, all listed options are valid methods.

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Q59

All businesses which involve certainty of profit for one party and uncertain or doubtful profit for the other are.

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

AI Explanation

Islam prohibits transactions where one party is guaranteed profit while the other bears uncertain or doubtful outcomes, as they involve unfairness and excessive uncertainty. Such businesses are considered impermissible.

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Q60

In Shirkat-ul-Aaqd, each partner is .………………..with respect to other’s share.

A) Agent
B) Like Owner
C) Like Co-owner
D) Stranger

AI Explanation

In Shirkat-ul-Aaqd, partners share ownership rights in the partnership assets. Each partner is considered like a co-owner with respect to the shares of the other partners.

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Q61

Which of the following is not an essential element of a contract?

A) Written document
B) Consideration
C) Subject Matter
D) Parties to a contract

AI Explanation

A contract does not necessarily require a written document to be valid. The essential elements include parties, consideration, and subject matter.

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Q62

Following means to give or take money or goods depending on something that is not known how it will end.

A) Gambling
B) Prize
C) Saving
D) Production

AI Explanation

Gambling involves giving or taking money or goods based on an uncertain outcome. It is prohibited in Islam due to the uncertainty and unfair transfer of wealth involved.

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Q63

A term in the contract of sale to cancel the contract if a cheating in price is found is called……………………

A) Khiyaar-e-Roiyyat
B) Khiyaar-e-Aib
C) Khiyaar-e-Ghaban
D) Khiyaar-e-Shart

AI Explanation

Khiyaar-e-Ghaban refers to the option available when a party has been cheated or significantly deceived in the price of a transaction. It allows cancellation or remedy in such cases.

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Q64

Who is the real owner of all things?

A) An individual
B) The state
C) Allah Almighty
D) A corporation

AI Explanation

According to Islamic belief, Allah Almighty is the ultimate owner of all things, while humans hold property as trustees and are responsible for its proper use.

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Q65

Jurists of Islam have described Riba as a following type of profit.

A) Hard-earned
B) None of the given options
C) Worthless
D) Effortless

AI Explanation

Islamic jurists describe Riba as an effortless or unjustified profit because it is earned without a corresponding productive effort or risk. It is therefore prohibited in Islamic financial principles.

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Q66

The term to cancel the sale contract if a defect is found in the subject matter is called……………..

A) Khiyaar-e-Shart
B) Khiyaar-e-Ghaban
C) Khiyaar-e-Aib
D) Khiyaar-e-Roiyyat

AI Explanation

Khiyaar-e-Aib is the option to cancel a sale contract when a defect is discovered in the subject matter. It protects the buyer from hidden defects in the purchased item.

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Q67

Modarbah is a type of business arrangement where………………….

A) Both partners provide capital and run the business
B) Profit and loss is shared on equal basis
C) Profit and loss is shared in capital proportion
D) One partner provide capital and other run the business

AI Explanation

In Modarbah, one party (Rab-ul-Mal) provides the capital while the other party (Modarib) manages and operates the business. Profits are shared according to an agreed ratio.

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Q68

The literal meaning of Musharakah is following.

A) Sharing
B) Caring
C) Transaction
D) Purpose

AI Explanation

The literal meaning of Musharakah is sharing or partnership. It refers to a business arrangement where partners contribute and participate together.

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Q69

Which of the following transactions may be called as Bai Mutlaq?

A) All of the given options
B) Exchange of rice for 170 Rupees
C) Exchange of rice with wheat
D) Exchange of barley with dates

AI Explanation

Bai Mutlaq refers to a normal sale where goods are exchanged for money. An exchange of rice for rupees is therefore an example of Bai Mutlaq.

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Q70

Which of the following is not a type of contract as per Islamic law?

A) Compensatory Contracts
B) None of the given options
C) Promissory contract
D) Non Compensatory Contracts

AI Explanation

Islamic law of contracts commonly classifies contracts into compensatory and non-compensatory categories. Promissory contract is not considered a standard category in this classification.

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Q71

Hiring a cab without telling the driver the destination or without agreeing on fare is case of _______.

A) Gambling
B) Gharar
C) Riba an-Naseeah
D) Riba al-Fadl

AI Explanation

Gharar refers to excessive uncertainty or ambiguity in a contract. Hiring a cab without specifying the destination or fare involves uncertainty and is an example of Gharar.

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Q72

Which of the following thing can not be given to anyone as Hiba?

A) A piece of cloth owned by Mr.A
B) A pair of shoes owned by Mr. B
C) A pair of shoes owned by Mr. A
D) A piece of cloth owned by Mr. A and Mr.B

AI Explanation

A valid Hiba requires the donor to have complete ownership and possession of the gifted property. Jointly owned property cannot be gifted by one person without proper ownership rights.

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Q73

Which of the following is an advantage of Musharakah business?

A) Wider scale of business
B) All of the given options
C) More capital
D) Pooling of abilities

AI Explanation

Musharakah provides advantages such as increasing capital, combining partners' abilities, and allowing business expansion on a wider scale. Therefore, all the listed options are advantages.