Social Acceptance And Its Impact On Adolescence - 945 Words

Social acceptance could be defined as the fact that most people, in order to fit in with others, attempt to look and act like them. Or sometimes it is the ability to accept or to tolerate differences and diversity in other people or groups of people. (Wikipedia) It is human nature to want to fit in, to be accepted by our peers. In early adolescence children start to develop the feeling of belonging. Adolescence is a transition period of late childhood and adulthood, they are beginning the maturing process, and their sexuality, physical development and finding where they fit in can be quite a challenge. Social acceptance, and the relationship with peers, family and society become complexed. Social acceptance in teens can have a positive impact and even negative impact on adolescence. Where we come from and the morals that are taught can determine which peer group one is accepted. Fitting in and meeting the right people is an important part of growing up it is an important part of life, and social interaction is the foundation of society. Everyone wants and needs to be accepted, nobody wants to be rejected. Social acceptance can be difficult because we are all trying to fit in somewhere, and the way society is today it can be very difficult to see where it is you fit in. Have you ever been rejected from other peers and wonder why that is? Or why the kid down the street may tease another child on the same block but not the one next door? Or have you wonderedShow MoreRelatedDevelopment Of A Child s Cognitive And Physical Development811 Words   |  4 Pagesand physical development. Ozretich and Bowman suggest other periods of rapid growth through middle childhood and adolescence such as moral development, self-concept, psychological and emotional traits, relationships to adults including parents, and peer relationships (2008). Undoubtedly, these dramatic psychosocial changes, when integrated with other biological fluctuations, impact children in a tremendously significant manner. For instance, puberty begins approximately between the ages of eightRead MoreYoung Person Who Is Going Through Adolescence Essay1676 Words   |  7 PagesDefined by Merriam-Webster Dictionary adolescents is â€Å"a young person who is developing into an adult: a young person who is going through adolescence† (Merriam-Webster Dictionary, 2016), Everyday adolescents are exposed to many ideas about their sexuality. There are several major factors that play into an individual adolescent’s views of sexuality. This dissociation between the ideas being pushed on children about sex causes confusion. Adolescents receive their sexual education and ideasRead MoreNegative and Positive Effects of Peer Relationships1564 Words   |  7 Pageshelping children through peer pressure, acceptance, and the anxiety of belonging. Yet how important is the environment that a child is raised on, this being shared or non-shared? How difficult or easy can peer pressure be? Will peer pressure help or deter a child from being functional. How much do these factors affect development from childhood to adolescence? This paper will explain the different stages of childhood to adolescence, and how a child and adolescence copes with nature and nurture . FamilyRead MoreDevelopment Stages Of Adolescence And Adolescent Sub Stages1276 Words   |  6 Pagesfollowing ways : ïÆ'Ëœ it will explain the nature and development stages of the adolescence. ïÆ'Ëœ it will enlist the development task during the adolescence . ïÆ'Ëœ it will explain the behavioral issues , challenges ,factors effecting the adolescence . ïÆ'Ëœ also discuss the gender disparity and phenomenon of the generation gap . ________________________________________ Adolescence: Concept of adolescence: adolescence is the dramatically evolving theoretical construct informed through physiologicRead MoreMiddle Childhood Essay724 Words   |  3 PagesMiddle Childhood and Adolescence University of Phoenix Human Growth and Development Jeanette Merchant August 17, 2010 Middle Childhood and Adolescence Stable and supportive families are crucial during middle childhood and adolescence development stage. Supportive family members and friends improve social development. The major change that occurs from middle childhood to adolescence is emotional maturation. During middle childhood stage, children develop more independence fromRead MoreGender Identity And The Transgender Orientation1386 Words   |  6 Pagesspecific sex-related behaviors develop in later years. These roles are largely based on social experiences and inner feelings. Generally, the behaviors are consistent with the gender assigned at birth, however; there are some children who are cross-gendered and show behaviors that are opposite to the sex assigned to them at birth (Pardo, 2008). Most of the transgender people identify their gender identity during adolescence, research studies suggest that transgender males and females go through a processRead MoreAdolescence : Literature Review1463 Words   |  6 PagesAdolescence is a time period when a child is trying to become its own person and eventually an adult. It’s a time period when a lot of changes are occurring. Whether it’s through their education moving from middle school to high school or changes w ithin their brain as they age. Adolescents are going through puberty, hormonal changes and experimenting with different social groups within their society. The culture and the social aspects of a society can shape an adolescent into an adult, whether itRead MoreGender Segments And Sex Groups During Childhood And Early Adolescence1475 Words   |  6 PagesIntro: Gender cleavage refers to the tendency for children of the same gender to self-segregate into two same-sex groups, male and female. This phenomenon appears to be a primary factor influencing social and cognitive development during childhood and early adolescence. The peer-reviewed article discussed in this paper focuses on gender cleavage in addition to age-related variances and sex differences during middle childhood. Peer-Review Article: The main point of the article is to analyze cross-sectionalRead MoreChildhood Depression And Its Effects On The Levels Of Self Esteem And The Link Between Depression1567 Words   |  7 Pagesperformance of adolescence. Historically, adolescences were not considered a candidate for depression mostly because of Freudian notions about unconscious, depression had been viewed as a condition which only affected adults. (Numley, 1996). Views on adolescent depression have changed significantly even since the 1970 s where childhood depression was thought to be masked by other conditions (Kahn, 1995). The debate continues, even today, as to whether other childhood and adolescence behaviors areRead MoreSocial Anxiety And Its Effects On The World1738 Words   |  7 Pages most being specific to certain things or situations. Social anxiety is listed differently in the Diagnostic and Statistical Manual of Mental Disorders (5th ed.), with criteria almost identical to those of social phobia with the exception that the fear be out of proportion in frequency and/or duration (American Psychiatric Association, 2013). Its symptoms range from blushing and profuse sweating to heart palpitations and panic attacks. Social anxiety is one of the top psychological problems in the

Persuasive Essay On Texting And Driving - 711 Words

Being able to drive is a dream come true, that can easily become a nightmare that you are never wake up from. The state of Florida is trying to make drivers aware of the dangers that come with distracted driving. Texting and driving is one of the biggest problems America is facing at the moment. Many people, especially teenagers, are dying from distractive driving. The state of Florida decided that they wanted to help with this problem and made it illegal to text and drive. They have also put up billboards all over the state to remind drivers about the law and the consequences of distractive driving. Not only could you be harming yourself but you could also harm others if you decide to text and drive. Do us all a favor and put your†¦show more content†¦There have been television commercials about the deadly effects of distracted driving, the state made it illegal to text and drive, and while driving there are billboards to remind you. Florida has done its part to try to ke ep you safe, now it’s up to you. Florida is the second worst state for distracted driving. Yes, there is a law that states texting and driving is illegal but it’s not enforces as much as it should be. After researching, I found that no points are added to your license after the first offense, two points are added to primary offense (e.g.speeding) if texting occurred in a school zone, and six points are added to your license if the texting offense resulted in a crash. The law also states that in order to get in trouble for this offense you must have committed two offenses. That caught the attention of the civilians and they are now wondering how effective this law actually is. Knowing that you’re able to get away with very minor penalties with that law, people are worried that others may not respect this law like it needs to be. People are wanting to improve the law to make it stricter which is understandable but everything takes time and Florida is doing the best they can with the hand they got dealt. When people enter the car they don’t think about getting into an accident. Nobody expects to be hit from distractive driving but it does happen. The state of Florida is doing everything inShow MoreRelatedPersuasive Essay On Texting And Driving704 Words   |  3 Pagesnothing worth being on the phone while driving. Put it down and enjoy the view. Driving with a phone should be illegal because by being on the phone people put themselves and other innocent lives in danger, drivers also risk the chance of getting a ticket, and it affects their driving. Everyday, thirty three hundred thousand people send texts, calls, or anything to communicate with other people while driving. Everytime a person picks up a phone while driving, it is like playing Russian Roulette withRead MorePersuasive Essay On Texting And Driving1385 Words   |  6 Pages Could you live with the knowledge that you deciding to pick up your phone while driving a vehicle caused someone to be injured or be killed? Texting and driving puts others around you and even your passengers at risk of being involved in an accident. Texting while driving takes your eyes off the road, hands off the wheel, and focus away from the road. All new drivers are taught not to text and drive, but they continue to do it even though they know it is dangerous. Teens and adults today have troubleRead MorePersuasive Speech: Driving While Texting Essay724 Words   |  3 Pagesboyfriend, but you over sleep. You wake up all panicy, youre already an hour late. You don’t want them to think you stood them out so you don’t even bother changing your clothes or fixing your hair. So you jet off in a rush and head to the car. As you’re driving you decide to send them a text to let them know you didn’t forget and you’re on your way†¦ little did you kno w you were on your way to the hospital, with a pit stop at the county jail. It turns out that in those 2 seconds where you were looking atRead MorePersuasive Speech Plan: Driving While Texting Essay991 Words   |  4 PagesPersuasive Speech Plan Topic: Texting while driving is dangerous to you and others. General Purpose: To persuade Specific Purpose: To persuade my audience not to drive and text. When I have finished my speech, my audience will be able to see why driving and texting is dangerous to themselves as well as others. Central Idea: Persuade others not to text and drive because it is very dangerous. Persuasive Proposition: (Statement of Fact, Value, or Policy) Statement of fact andRead MoreBUS 303: A Persuasive and Descriptive Essay on Traffic on Freeway1838 Words   |  7 Pagesï » ¿Persuasive and Descriptive Essay The loud screech of brakes and chaos of cars madly attempting to avoid hitting each other froze the rush hour traffic to a standstill in pure fear. You could literally smell the burned rubber, fuel and fear in the hot afternoon sun. In an instant of extreme paranoia all the drivers on the freeway stopped and looked to see what had nearly caused at least four cars to go hurtling into each other. In the fast lane sat a young man chatting on his cell phone andRead MoreDistracted Driving Annotated Bibliography1727 Words   |  7 PagesAnnotated Bibliography Distracted Driving. Opposing Viewpoints Online Collection. Detroit: Gale, 2012. Opposing Viewpoints In Context. Web. 6 Mar. 2013. In this article â€Å"Distracted Driving†, many distractions are mentioned other than just cell phone usage, such as changing the radio station or driving with kids in the back seat. It is stated that the dangers from distracted driving are because of the decrease in brain function and inability to pay full attention to the road. These practicesRead MoreTexting and Driving Essay1063 Words   |  5 PagesChantay Lowe English 1301 Persuasive Essay People should be cited for texting while driving because not only are drivers putting themselves in danger but also everyone else around them. Statistics have indicated that over 6,000 deaths and well over half a million injuries have occurred due to drivers using cell phones in 2011 alone. Drivers sending or receiving test messages take their eyes off of the road for at least five seconds which is enough time to cover an entire football fieldRead MoreAnalysis Of Cellphones By Rex Murphy1386 Words   |  6 PagesThe essay, Cellphones by Rex Murphy is an informal persuasive essay on the topic of cell phones and how distracting they are. The essay is a cause and effect essay that implicitly conveys the thesis, arguing that cell phones are distracting and inhibit driving. The writer attempts to use humour mixed with a very negative tone to raise awareness among Toronto citizens of the dangers of cell phones, following the movement that calls for cell phones to be banned in cars in T oronto. Although distractedRead MoreArguementative Eassy on Dependent on Technology1092 Words   |  5 PagesPersuasive Essay: Have people become overly dependent on technology? Technology. Perhaps youve heard of it. Perhaps you have spent every single day sitting placing your head in a fixed position in front of a bright laptop computer screen, clicking away as countless hours pass through your fingers. Perhaps youve spent pondering over the conditions of your thumbs after ruthlessly throwing them about on your latest piece of phone technology, endlessly texting friends upon friends about useless subjectsRead MoreThe Effects of Texting on Literacy: Is It Corrupting Language?3736 Words   |  15 PagesTHE EFFECTS OF TEXTING ON LITERACY: Is it corrupting language? 1.0 INTRODUCTION What’s SMS? SMS first appeared in GSM in about 1991. SMS later appeared in CDMA and TDMA networks. Mobile Origination (MO) - a key feature of SMS, allowing the user to originate SMS messages from the handset - has only became available to non-GSM users in 2000. Ask a kid anywhere in the world, he or she would tell it is form of talking to another person(s), with a cell phone using letters and not words. SMS means

Someone I Admire Free Essays

Among the teachers I have encountered through my school life, Mrs. Smith is the one that I most admire. She was one of my English teachers in junior high. We will write a custom essay sample on Someone I Admire or any similar topic only for you Order Now In contrast to other teacher’s apathy, her vitality always refreshed the atmosphere in our classroom. Moreover, her enthusiasm and thoughtfulness warms my heart to this day. Mrs. Smith’s charisma won everyone’s appreciation soon after she began teaching us. Since she was not our first English teacher, everyone had a skeptical eye on her in our very first class. Sensing our doubts, she began the class with a guessing-people game. She asked us to write down characteristics about ourselves on a small piece of paper, which was read aloud to the class as a clue to identify the person. We had great fun that day due to her ingenuity to grasp what we wanted. Afterwards, the contempt students used to hold toward her was nowhere to be found. The energy and passion Mrs. Smith possessed when teaching was unbelievable. The more days she spent with us, the more I noticed a distinctive quality of hers that truly amazed me. No matter what the weather was like and how she was feeling, she was always in high spirits when she entered the classroom, as if she was ecstatic to see us. Besides, she encouraged us to interact with her; therefore, the class was by no means serious and tense, but very enjoyable and inspiring. Mrs. Smith used clever techniques to arouse our interest in learning English. Quizzes are an indispensable element of a class, but Mrs. Smith added them with her own illustrations to make them more fascinating. She also printed many handouts, adorned with her amusing drawings, to provide the information missing in the textbook for us. In short, she had the magic to transform something painstaking into something pleasurable. Furthermore; she introduced lots of English songs to us in her class. Whenever we started a new lesson, she would come up with songs whose themes or lyrics were related to what we were learning. The songs were so fantastic that everyone took delight in listening to them and enhancing our vocabulary from the lyrics. Through her instruction, my love for English that year was resurrected. The consideration Mrs. Smith showed us outside of the classroom was moving. The third year of junior high was difficult to most of us, for studying was the only proper thing we could in order to prepare ourselves for high school. Exhausted from the schoolwork, some students were extremely depressed. Mrs. Smith perceived their low spirits and encouraged students to go to her office and talk about their problems. Incredibly, she became the spiritual pillar of the class. Moreover, she intervened in disputes among students and cheered for us in every tournament at sports meets. Another unforgettable thing she did was write a card for every student at Christmas. I was close to tears when she handed the card to me, for no other teacher had ever treated me with the consideration that she did. Mrs. Smith has created the model of an excellent teacher to me. Her teaching skills and attentiveness are etched eternally in my mind. Now when I teach students, I strive for devoting the best of my patience and effort in honor of her. How to cite Someone I Admire, Papers Someone I Admire Free Essays My inspiration is a fictional character and one of the three protagonists of J. K. Rowling’s Harry Potter series, Hermione Jean Granger. We will write a custom essay sample on Someone I Admire or any similar topic only for you Order Now One reason I admire her is because she’s got prodigious intellect and cleverness. She also inspires me because she is always so kind to everybody. Hermione was nearly twelve when she first attended Hogwarts School of Witchcraft and Wizardry. She is a Muggle-born, who come from non-magical families. However, she became an overachiever who excels academically. She is the first student to master any spell or charm introduced in classes and even from more advanced years. She is also the first one to be able to cast non-verbal spells. Probably her greatest achievement was when she became a Gryffindor prefect who has been given extra authority and responsibilities by the Head of House and Headmaster in her fifth and sixth years. Another reason I admire her is because she is a very good person. She is sympathetic to others and quick to help them, especially those who are defenceless, such as Neville Longbottom, House-Elves, fellow Muggle-borns, half-giants like Hagrid, and werewolves like Lupin. To sum up, Hermione is my inspiration because she is so intelligent and good. She is an exceptionally talented young witch. She received ten highest marks in eleven Ordinary Wizarding Level Examinations. I always want to be the person that people love and respect as her. . She always keeps her attention focused on the job that must be done. Gryffindor values courage, bravery, nerve and chivalry and is described as a â€Å"very logical, upright and good† character Hermione is horrified by the cruelty that house-elves suffer, and founds S. P. E. W. the Society for the Promotion of Elfish Welfare, as an effort to gain basic rights for them She begins her post-Hogwarts career by working in the Department for the Regulation and Control of Magical Creatures, where she is instrumental in greatly improving the lives of house-elves; she later moves higher up in the Department of Magical Law Enforcement while ensuring the eradication of oppressive pro-pureblood laws There’s somet hing about her fierce intellect coupled with a complete lack of understanding of how she affects people sometimes that I just find charming and irresistible to write Hermione’s most prominent features include her prodigious intellect and cleverness. She is levelheaded, book-smart and is very good with logic. She is often bossy yet unfailingly dutiful and loyal to her friends—a person who can be counted on Hermione is a person that â€Å"never strays off the path; she always keeps her attention focused on the job that must be done. Hermione has an extremely compassionate side to her personality and is quick to help others, especially those who are defenceless, such as Neville Longbottom, first-years, House-Elves, fellow Muggle-borns, half-giants like Hagrid, and werewolves like Lupin Hermione is also very protective of her friends and values them so much that Rowling has suggested that, if Hermione had looked in the Mirror of Erised, she would have seen Harry, Ron, and herself â€Å"alive and unscathed, and Voldemort finished. [42] Hermione has also learned to ignore what bullies such as Malfoy say to her, often preventing Harry and Ron from retaliating and thinking of some way to outsmart him. She accepts her status as a Muggle-born witch, and states in Deathly Hallows that she is â€Å"a Mudblood and proud of it† Hermione is an exceptionally talented young witch. She received eleven O. W. L. s and ten Outstandings is repeatedly the first student to master any spell or charm introduced in classes and even from more advanced years She is also the first one to be able to cast non-verbal spells despite being born to Muggle parents, Hermione’s magical abilities are innate How to cite Someone I Admire, Papers

Why Antony Lost Against Octavian free essay sample

After all, he was in fact the great Julius Caesar’s second in command. Through much of the internal conflict of his time, he did astoundingly maintain at least some support in Rome. However, his failing to acknowledge Octavian’s military and political potential was his first mistake. Octavian learned that as Julius Caesar’s adopted great nephew, he was entitled to be the legal principle heir of all that belonged to Caesar. Although taking on such a role was a high risk to his own safety, making him a target by association with Caesar and his agenda, he pressed forward with an insatiable ambition. Possibly driven by the Roman cursus honorum, a lust for power and riches, and a desire for avenging the death of his great uncle, Octavian already had an advantage from the beginning. The citizens of Rome were promised a sum of money, but had been refused payment by Antony. We will write a custom essay sample on Why Antony Lost Against Octavian or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The young New Caesar stepped in and raised his own money by selling his land and giving it to the people. Though only a mere 18 or 19 years of age, had not served in any Roman political capacity, nor had any military achievements under his belt, young Octavian had managed to muster up some support in Rome using only his newly assumed name, Caesar, and his overly liberal donations to the people. He was their connection to their beloved general, Julius Caesar, the â€Å"son of a god. † Octavian began to reinforce his strength with his personal forces with Caesars former loyal veterans. Underscoring his status as heir to Caesar and armed with a rising, dedicated military force of his own, he boldly marched to Rome. It was now that he was a definite political threat to Antony. However, Antony seemingly ignored this fact as he remained away from Rome in the east. Another major reason for losing was his lack of political support from Rome. Generally many viewed him as a brilliant general. He had a reputation of fighting alongside his own comrades at the front line, right in the heat of battle. This fact curried the favor of his legions from the ground up. Conversely, others viewed his personal life as detrimental to his reputation and by extension his ability to be a successful leader. Even prior to the assassination of Julius Caesar, he was slowly digging his own political grave. Plutarch reports that he was lazy, had a bad temper, and cavorted other men’s wives. His personal lifestyle later led to his lack of support from the general populace and the senate. It is reported that Cicero, an oratory enemy, stated that general members of society who are upright and moral â€Å"intensely disliked him, and were disgusted† by his drunkenness, making a showy display of his extravagances, and frolicking other men’s women. Ciceros speeches and publication of propaganda against Antony deeply impacted the Senates view of him. In fact, an army was sent to defeat him for bullying Lepidus in Cisalpine Gaul, whom Rome viewed as the rightful governor. It was largely Cicero’s oratory speeches that shifted the public opinion to such an extent that the Senate was moved to declare him an enemy of the state, driving him out of Italy. In the end, Antony loses his reputation and support from the state, something every rising, successful commander needs in order to survive and thrive in Roman politics. If only he would have remained in Rome, he could have at least had the opportunity to defend his position as Caesar’s second in command and repaired his reputation. However, in his absence, it was Octavian and Cicero who was there to slowly demolish his chances at political and military success. The alleged poor choice of habits that governed his personal affairs were generally recognized as a trigger for the increased factional schisms that eventually would prove injurious to his political career and ultimately an desertion from the Senate. Antony’s dealings with Cleopatra and Egypt proved to further soil his reputation among the Romans. His abandonment of the beloved Octavia, his legal Roman wife, in lieu of Cleopatra, a foreigner, didn’t sit well with the general public opinion in Rome. After having twins and yet another son with Cleopatra, he was deeply indebted to her, possibly both emotionally and politically. Onlookers must have imagined how such attachment must have been negatively viewed as deeds of a traitor in Rome. To top it all off, although by illegal means by Octavian it was later realized that Antony had secretly recorded in his will that the kingdoms conquered by Egyptian warfare be divvied up to the Egyptians, not Rome. This fact further alienated Antony as what he truly was, an enemy of the state, eliminating any possible assistance from Rome. As Rome hears the news, Octavian is gathering more and more backing from Rome in pursuit of Antony. In what some would say is the deciding battle in the drama with Antony and Octavian, two large forces collide at Actium in western Greece in 31 B.

Your marketing sucks an Example of the Topic Business Essays by

Your marketing sucks 'Every marketing dollar you spend should bring in more than 1 dollar in return', saysStevens in his blunt-titled book, Your Marketing Sucks. The author, Mark Stevens, who is anentrepreneur and CEO of MSCO Inc., argues that most companies don't have a clue aboutgood marketing. According to Stevens, most marketing amount to 'throwing thousand-dollarbills out the window'. That if the money spent on marketing is not bringing in money, thenthe marketing sucks. When an ad agency starts bragging about Clio Awards received, Stevenswrites, fire them. They should be in the business world to create attractive ads and logos thatwill generate sale out of the marketing activity. Stevens drives out that knowing the best wayto achieve the company's overall objective, is the work of an Extreme Marketer. An ExtremeMarketer is someone who gets a return of investment from her extreme marketing activities. Need essay sample on "Your marketing sucks" topic? We will write a custom essay sample specifically for you Proceed Extreme marketing, according to Mark Stevens, is a process by which one will determinehow much will be spent on effective marketing campaign strategy and receive a positivereturn on the investment. The benefit would be-increase in income and it follows that there isbusiness growth. The business will have an increase in value which is the true measure of asuccessful business venture.. This book will teach the readers how to become an Extreme Marketer by touching onboth strategy and tactics. In a reasonable term and through examples, Stevens provides hisphilosophy on modern marketing and practical advice on how to fix the problems.. In YourMarketing Sucks, Stevens shows how to formulate an innovative and effective marketingplan and then check on the results. Spending a marketing budget should ensure that there is ameasurable return on marketing expenditure. This is an important book as a reference andguide for anyone who is interested to be a business owner whether his company is small orlarge. Business investors will know how to spend their money wisely and get a good returnon their investments. Reference List Mark Stevens (2003).Your Marketing Sucks: New York: Crown Business.

Changing the Voting Structure essays

Changing the Voting Structure essays As a minority in the United States, Black people start off from a disadvantaged position from birth. Racism, prejudice, and systematic manipulation of economic, social, and educational structures in the United States lead to securing the disadvantaged position that black people maintain. The role and impact of majority rule, single member districts, and Black representation will analyzed in its effects on Black Americans in a watered down Democracy. In contrast solutions such as interest representation, cumulative voting and super majority rules will be discussed and analyzed to interpret what impact they could have on the current system if any. Majority rule is defined as "the proposition that 51% of the people should be able to get whatever they want" (Guinier xvi). Guinier points out several problems with majority rule, which include: a disproportionate distribution of power, voter dilution, and racial polarization within the legislature. These all serve to point out the fact that majority rule is not a just form of rule. Guinier hypothesizes that in order for a rule to be fair, "it must comport with the stability, accountability, and reciprocity assumptions." In light of that, Guinier says, "A system in which a permanent and homogeneous majority consistently exercises disproportionate power is neither stable, accountable, nor reciprocal." Examples of such unjust majority rule would be how certain cities are drawn into districts in order to maximize legislative power. Guinier points out a situation that includes 1000 voters within a ten-seat jurisdiction. Within that jurisdiction the legislature passes laws by a simple m ajority of six votes. If a small minority of like-minded people spread across the 10 seats ban together, they can win a majority in the legislature without having a majority of voters in the popular vote. Is it fair that the minority can rule out the wishes of the majority through trite manipulation of a sys...

Article brief Example | Topics and Well Written Essays - 750 words

Brief - Article Example The methodology used by the study to come up with a fraud model involved three steps. The first step was to data of a public company from 1995 to 2002. A sample of 100 companies was split into fraud and non-fraud companies (McKee, 2014). The third step was to test 15 predictive variables to determine those that were good predictors of fraud status. The fraud companies were selected from SEC Enforcement Release that provided publicly reported fraud. Non-fraud companies were matched with the fraud companies in terms of three criteria including market value, positive change of 25% in net income, and standard industrial classification (McKee, 2014). The predictive variables were derived from prior research literature. Analysis of the data involved binary logistic regression using fraud status as the variable to be predicted. The variables used when analysing the 15 predictive variables include company size, auditor tenure, and McKee-Lensberg bankruptcy probability. The fraud model was tested with 91 companies which were in the original sample. The other 9 companies not included in testing did not have data for at least one of the three variables used to analyse the predictive variables (McKee, 2014). A company with fraud probability greater than 50 was regarded as a fraud company while a company with less than 50% probability of fraud was regarded as a non-fraud company. The results of the study are that the model predicted 63 of the tested companies’ fraud status correctly. This reflected 69.2% level of accuracy. The model also predicted fraud status of 28 companies incorrectly, reflecting 30.8% rate of error. This model can be compared favourably to the fraud model developed by Alden et al (2012) which showed 75% accuracy of training rates and 64% accuracy of validation. This article is important because it provides a fraud model that can be used by auditors to develop standards

High tech building design Essay Example | Topics and Well Written Essays - 2750 words

High tech building design - Essay Example This research will begin with the statement that hi-tech building design refers to architectural designs and services that involve the use of advanced technology thereby improving the functionality of the final product. In simple terms, it is a particular style of building. In industries, it involves the use of machines to attain quality products. These machines use modern technology like computers, electronics and robots to help companies achieve their goal. Hi-tech building design has risen from modern architecture, incorporating elements of the latest technology in building designs. These include; prominent show of building techniques and functional components, decent alignment and use of sophisticated materials such as metals, glass and futuristic shapes. In the past, building industry has applied technologies that made building designs complicated, these made it difficult for man to design buildings of their needs. Heat regulation systems in these houses were very poor since the ventilations provided were insufficient and could not effectively control internal temperatures. With regards to hi-tech designs, several equipments have been invented to effectively solve the problem of heat in buildings and have also helped solve issues of human thermal complaints both at homes and in offices. Thermal complaint had been declared a major drawback to economic development. People claimed that it was because of thermal problem that they did not perform well in their endeavors and this called for a pragmatic approach towards this nuisance. Fans have been installed in buildings to regulate heat in regions where there have been a lot of heat; heaters have also been installed in the buildings which experienced a lot of cold like the Polar Regions. These products of hi-tech design have rendered redundant, thermal disruptions which are now considered a thing of the past. Representation and function Architects rely entirely on this technology for production of feasible stru ctures. It is also applied in industries, transport, flight, communication and space travel. It aims at eliminating burdensome materials such as; bricks, concrete blocks used in the construction industry and introduce steel which increases the life span of the structures. Glass, which is responsible for the aesthetic aspects, is also embraced by this technology. The introduction of steel and glass was meant to enhance the function of the final product in order to catch up with the technologies of other sectors, which keep on improving each day depending on the core materials used for production in those sectors. Buildings have always lagged behind since the materials used in productions are inflexible and not easily changeable. For instance, concrete has proven to be the most suitable material used in construction, even though it withstands compression, it fears tension and must therefore be reinforced using steel. Originally, hi tech technology was termed as malicious, ill motive i ntended to dislodge employees from their duties. With time though, its good intentions have conspicuously come to light and has quickly been embraced the world over. It has played a major role in employing double the number that was initially engaged in these particular sectors of the economy. Moreover in the building industry,

CHINA'S TERMS Coursework Example | Topics and Well Written Essays - 500 words

CHINA'S TERMS - Coursework Example After the objective is brought forward, rules and regulations can be easily set up and the foreign policies can be well dealt with (Tutor2u.net, 2014).  . It is usually stated that the companies might lose the market share if it decides that to let go of a new or international market. Although, the ethical and moral beliefs state differently. It is believed in their case that it is not appropriate to work alongside collective governments. In case the company decides to leave the market due to some reasons then the rival business will take the advantage and step up to get a hold of a higher market share. Entering the market later makes it harder for the companies to gain a higher market share or at times a moderate market share. I believe that the company should not transfer their technologies and hence prefer the first option that can prove to be the best for companies. The market in China is increasing in volume and is has a growing market. The companies as a result aim at protecting and safeguarding their own sales and thus, stay put to their production methods. The transfer of technology can be both time consuming and costly. China can, however, provide the company with good business but it is also true that the companies can prefer other countries to set up their production factories at, as they are only assumed to be the customers of Chinas product

Impact of Islamic Banking on Consumer Financing Sector

Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the Impact of Islamic Banking on Consumer Financing Sector Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the