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Week 1
Finance in Business
By the end of this week you should be able to: Give a definition of finance Explain the types of finance available for
running a business Discuss the characteristics of Islamic finance and banking.
Finance in Business
What is Finance?
Why do Businesses need Finance?
Savings Money received from family and friends Loans from a bank Government loans and grants Revenues from the disposal of business assets Profits from the business
Sources of Finance
Banking
Based on the principles of Islamic law (Sharia).
Sharia prohibits interest or fees (known as Riba or Usury) for loans of money.
Lending to businesses that provide goods or services considered contrary to Islamic principles is also Haraam (forbidden).
Islamic banking and finance is now one of the world's fastest-growing economic sectors.
Islamic banking
By now you should be able to: Give a definition of finance Explain the types of finance for running a
business Discuss the characteristics of Islamic finance
and banking.
Finance in Business