In a Mudarabah contract, how are losses borne between the parties?

In a Mudarabah contract, how are losses

Multiple choice — select the best answer

ALosses are shared proportionally between the capital provider and the manager
BLosses are borne solely by the capital provider (rab al-maal), unless due to the manager's misconduct
CLosses are borne solely by the manager (mudarib)
DLosses are split 50/50 regardless of capital contribution

✓ Correct answer: B. Losses are borne solely by the capital provider (rab al-maal), unless due to the manager's misconduct In Mudarabah, the capital provider (rab al-maal) provides funds and bears all financial losses, while the mudarib (manager) contributes expertise. The mudarib only bears losses if they result from their own misconduct or negligence.

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In a Mudarabah contract, how are losses borne between the parties?

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