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Please choose only one answer:
A. Accounts Payable
B. Long-Term Loans
C. Owners' Equity Paid-in Capital
D. Notes Payable
The answer is B - Long term loans. Typically all conventional banks providing corporate loans charge interest for the repayment of those loans which is a Riba-based lending. Riba-based lending is not allowed in Islam.
Accounts Payable are the money the company owes it's suppliers and vendors for goods / services it received from them but hasn't paid their fees yet. Those are compliant with Islamic Finance rules. Accounts Payable are usually due in 12 months or less.
Notes Payable are similar to Accounts Payable in concept but they are more than 12 months. They are long term debt to the company's vendors and suppliers.
The Owners' Equity Paid-in Capital is the money provided by the owners of the company as either seed capital or expansion capital. This is the most likely form of financing for start-up capital for a company which is Shari^ah compliant.
Thanks for the invitation Mr. Nuridin, I agree with your answer, Long term loan because of Riba based lending.
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Thank you for inviting me to answer your question
I leave the answer to the specialists Distinguished
And good luck
I apologize for the answer, I leave the answer to experts specialists in this field that's not my specialty field
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