Profit Theory: the Islamic viewpoint

Abstract

In view of a unique relationship of unity and divergence between Islam and capitalism, the paper takes a hurried look at the current state of profit theory in the mainstream economics. Here it identifies a few issues which include the concept of profit, its source and its relationship with the notion of entrepreneurship. It argues that profit theory with reference to these issues has run into confusion and controversy with the rise into prominence of the modern corporations. Profit as a surplus over costs arises because of dynamic change and is institutional in its appropriation going largely to the block of shareholders that controls the corporation.Profit; Interest; wages; entrepreneur; profit sharing model