MCQ Bank

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.

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Q54

Which of the following is an example of a non-monetary exchange through a contract?

A) Service against service
B) Goods against goods
C) All of the given options
D) Goods against service

AI Explanation

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.