A Deed of Partnership is a formal agreement drawn up in the form of a deed which outlines the respective capital contributions, profit-sharing percentages, and other significant details among partners in a partnership business.
Equity accounting refers to a method of accounting whereby a company reports a proportionate share of the undistributed profits and net assets of another company in which it holds a share of the equity.
A joint venture is a commercial undertaking jointly entered by two or more entities, limited by time or activity, where each participant accounts for their own share of assets, liabilities, and cash flows.
Muqarada is an Islamic financial instrument that serves as an alternative to conventional bonds. It aligns with Sharia principles, offering a profit-sharing investment model.
Musharaka is a joint venture or partnership structure in Islamic finance where profits and losses are shared among partners according to predetermined ratios.
Profit-related pay (PRP) refers to the situation where employee compensation is directly linked to the profitability of the employer. This approach aims to boost employee motivation, commitment, and performance by aligning their interests with the company’s commercial success.
Profit-Related Pay (PRP) is an employee compensation plan where the amount paid to an employee is tied to the company's profitability. It aims to align the interests of employees and shareholders by incentivizing employees to work towards increasing company profits.
A profit-sharing plan is an agreement between a corporation and its employees which allows employees to share in the company's profits. Contributions are made annually by the company to an account for each employee, accumulating tax deferred until retirement or departure. Employees may be able to borrow against these funds for major expenditures.
The ratio in which the profits or losses of a business are shared among its partners. For a partnership, the profit-sharing ratios will be defined in the partnership agreement, usually reflecting the amount, given as a percentage of the total profits, attributable to each partner.
A profit-sharing scheme is a program that provides employees with a share in the profits of the company they work for, often by means of share ownership.
Merchant wholesalers providing merchandise and rack displays at retail locations. Rack jobbers own the merchandise and work cooperatively with retailers in terms of sharing profits, thus relieving the retailer of the need to acquire merchandise while allowing them to benefit from the sale of the merchandise.
Shirkah refers to an essential concept in Islamic finance, embodying the idea of partnership and collaboration where two or more parties share profits and losses from a venture according to an agreed ratio, underscoring principles of risk-sharing and fairness.
A sleeping partner is an individual who invests capital in a partnership but does not participate in daily business operations. This person shares in the profits and bears the legal rights and obligations of ownership as specified in the partnership agreement.
An additional amount of money added to payments made on the maturity of an insurance policy or on the death of an insured person due to profitable or surplus investments by the insurer.
