But this does not imply that the very existence of the entrepreneur has been

But this does not imply that the very existence of

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But this does not imply that the very existence of the entrepreneur has been denied. What it does mean is just that the entrepreneur is not an independent factor, but is included in any one of the three factors.
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Factors of Production in Islam Capitalism and Islam Difference between the two systems are: 2. It is not "interest" but "profit" that has been considered as the "reward" for Capital.
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Factors of Production in Islam Capitalism and Islam Difference between the two systems are: 3. The factors of production have been defined in a different manner. Capitalism defines' 'Capital'' as "the produced means of production." Hence, Capital is supposed to include machinery etc. as well, beside money and foodstuff. But the definition of "Capital" that we have presented while discussing the Islamic view of the distribution of wealth, includes only those things which cannot be utilized without their being wholly consumed, or, in other words, which cannot be let or leased - for example, money. Machinery is to be excluded from "Capital", according to this definition.
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Factors of Production in Islam Capitalism and Islam Difference between the two systems are: 4. “Land” It has been defined in a more general way. All those things have been brought under this head, which do not have to be wholly consumed in order to be used. Hence, machinery too falls under this category.
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Factors of Production in Islam Capitalism and Islam Difference between the two systems are: 5. “Labor” The definition of Labor too has been generalized It includes mental labor and planning
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Factors of Production in Islam Capitalism and Islam Capitalism Under the Capitalist system, the most important characteristic of the entrepreneur (which entitles him to "profit") is supposed to be that he bears the risk of profit and loss in his business. From the Capitalist point of view: “Profit” is a kind of reward for his courage to enter into a commercial venture where he alone will have to bear the burden of a possible loss, While the other three factors of production will remain immune from loss, for Capital would get the stipulated interest, Land the stipulated rent and Labor the stipulated wages. Islam The Islamic point of view insists that the ability to take the risk of a loss should, in reality, inherent with Capital itself, and that no other factor should be made to bear the burden of this risk. Consequently, the Capitalist, in so far as he takes the risk, is an entrepreneur too, and the man who is an entrepreneur is a Capitalist as well.
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Factors of Production in Islam Three permissible ways of Capital Investment in a business venture 1. Private business 2. Partnership 3. Co-operation of Capital and Organization (Mudarabah)
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Factors of Production in Islam Three permissible ways of Capital Investment in a business venture 1. Private business The man who invests Capital may himself run the business without the help of any partners or shareholders.
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  • Summer '19
  • Faisal Sawar
  • Capitalism, Capital Investment

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