profit?When an itemis bought or an activity is performed, the profit is the difference between theamount of money gained and the amount spent in the process.

To make a profit ona sale, not only must the cost paid originally be exceeded by the selling on,but that cost plus the costs involved in processing and transporting thegoods and paying the wages of the staff who do it, as well as fixedcosts such as the rent and bills, must exceed the amount of money made byselling the goods on. Profits are perfectly acceptable in Islam (contrary to a relatively commonbelief, which is probably caused by confusing profit with interest, which is forbidden), but thereare rules about the nature of profits. For example, both parties to a deal mustknow how large the profits are. Justice and honesty are the foundations ofmaking a profit and remaining true to the Shariah. Profit is legitimate, butprofiteering is not.profit and loss sharing (PLS)?An interest-free lendingsystem using  mudarabah and musharakah as its mechanisms.profiteering?Making moneyon something that is considered unethical.

An example of profiteering would beraising prices during a time of great shortage such as a natural disaster or aconflict. Whereas those raising the prices might claim this is simple supplyand demand economics, and legally speaking they would be right, it would stillbe seen as immoral, not only by Islamiccommunities. Pricefixing, where competitors in an open market agree in secret tokeep prices artificially high (while outwardly pretending to be incompetition), can also be regarded as profiteering.profit-sharing?An incentivescheme set up by businesses whereby a proportion of profits the company makes isdivided between its staff members in the form of a bonus over and above theirnormal salaries. While it can be an effective way of boosting productivity, itcan lead to bitterness and in-fighting within a company when shirkingindividuals receive the same bonus as productive ones. Profit sharing is oftenin the form of company shares, where appropriate.property?Anythingthat is owned, be it an object (for example a car) or something intangible suchas the rights to a song (intellectual property).

Property is most often used todescribe buildings and the land they are on, but all property is notnecessarily of this type.prophet?A person whohas been contacted by a god or a messenger of god(for example, an angel)with a message to spread around the people. The message they receive is calleda prophecy. Muslimsbelieve that the word of God was delivered the the Prophet Muhammad or simply the Prophet(with a capital ‘P’).

There are over twenty prophets in Islam, the first ofwhich was Adam,and the second to last being Jesus(Isa). Howeverthey believe that Muhammad was the final prophet before Judgment Day.

x

Hi!
I'm Erica!

Would you like to get a custom essay? How about receiving a customized one?

Check it out