Islamic Principles of Business & Finance Past Papers


Subject: Islamic Principles of Business & Finance

Time Allowed: 15 Minutes

Maximum Marks: 10

NOTE: Attempt this Paper on this Question Sheet only.  Please encircle the correct option. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.


Part-I Encircle the right answer, cutting and overwriting are not allowed. (10)

1. A contract of forward sale in which payment is in advance whereas the delivery of goods in future
A. Bai Salam
B. Bai Mudarba
C. Bai Murabaha
D. Bai Musawamah
2. The Primary Source of Islamic Law
A. Holy Quran
B. Ijma
C. Qiyas
D. Sharia Supervisory Board
3. Saving and term deposits in Islamic banking in Pakistan are offered under the contract

A. Ijara
B. Salam
C. Mudaraba
D. Musharka
4. Supply contract is termed as
A. Bai Salam
B. Bai Al Istijrar
C. Bai Istisna
D. None of these
5. ______ means hazard, chance, stake or risk.
A. Gharar
B. Khatar
C. Maiser
D. none of them
6. __________ takes place when two parties undertake obligations in respect of any matter-
A. Aqd
B. Contract
C. wadah
D. Methaq
7. Ijarah Muntahia Bi Tamleek is an alternate of _______.
A. Hire purchase lease
B. installment
C. Modern I jarrah
D. shirkah
8. A contract involving “Principal & Agent”
A. ljara
B. Wakala
C. Kafalah
D. Rahn
9. Islamic mode of financing based on periodic rentals (contract allowing the transfer of Usufract
A. Bai Salam
B. Ijara
C. Bai Musharka
D. none of these
10. Islamic mode of financing known as Cost plus system
A. Bai Salam
B. Bai Istisna
C. Bai Murabaha
D. Bai Mudarba


Subject: Islamic Principles of Business & Finance

Time Allowed: 2 Hours 45 Minutes

Maximum Marks: 50



Part-II Give short notes on following, each question carries equal marks. (20)

Q#1: Briefly explain the structure of Murabaha

Q#2: Explain the need for Islamic Banks and NBFIs

Q#3: Discuss Diminishing Musharka as an Islamic Mode of Finance

Q#4: Write down any four Business Ethics and Norms.

Q#5: Explain modern use of Ijara


Part-III Give detailed answers, each question carries equal marks. (30)

Q#1: Explain the features with examples of Bai Salam and Bai Istisna‘a (Forward Sale)

Q#2: Discuss in detail with daily life examples the prohibition of Riba, Gharar and Maiser in Islamic Economic System

Prof.Fazal Rehman Shamil (Available for Professional Discussions)
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