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Corporation is a legal entity that has three chief distinguishing features:

1. limited liability; owners can lose only what they invest.

2. easy transfer of ownership through the sale of shares of stock.

3. continuity of existence.

In this sense, corporations are allowed and accepted per Islam's teachings. The main difference between Islamic Economics and Western Economics is that Islamic Economies forbids usury and requires tithing (giving a percentage of wealth to the poor).

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12y ago

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