NECESSARY CONDITIONS AND BACKGROUND FOR THE DEVELOPMENT OF ISLAMIC FINANCE: ITS HISTORY AND MODERNITY
This article investigates how modern corporate Finance can be represented from the Islamic position. It is known that the choice of legal form affects the risk and the potential for a refund and, therefore, the value of the business. European forms of business organization are similar to classical Islamic, such as Mudaraba, Musharaka or their combinations. The article offers a brief explanation of the nature of corporations, the role of financial managers in the financial decision process. The author compares the activities of business structures of different organizational forms in terms of: (1) exposure of personal assets to risks from equity participation in the enterprise; (2) the cost of organization and management; (3) the possible life of each form of business organization; (4) the relative ease of raising capital in financial markets.