ACCA Financial Management (F9) Certification Practice Exam

In the context of a mudaraba contract, what role does the mudarib play?

1. Provides capital for the business

2. Contributes skills and expertise

3. Manages day-to-day operations

4. Assists in profit distribution

The correct answer is: Contributes skills and expertise

In a mudaraba contract, the mudarib plays a crucial role in contributing skills and expertise to manage the investment. This type of contract is a partnership where one party provides the capital, while the mudarib brings in their knowledge, management skills, and operational expertise to run the business. By focusing on the day-to-day management and strategic decision-making, the mudarib leverages their experience to operate the venture effectively. The expectation is that the mudarib will utilize their skill set to generate profits from the capital provided by the other party. The mudarib is not responsible for providing capital but instead focuses on using their experience and capabilities to ensure that the business operates successfully, thus playing a critical role in the overall success of the venture. This differentiation of roles is central to the mudaraba contract, where the division of responsibilities allows both parties to utilize their strengths. In this context, the mudarib's ability to manage the business and apply their expertise is the most significant contribution they offer, making the correct answer a reflection of their core responsibilities within the agreement.