The Mudarabah business may be classified under the two categories, that is given below,
1- Al-Mudarabah al-Muqayyadah (restricted Mudarabah):
The Rabb-ul-Mal may specify a particular area of business for the Mudarib, in which case he shall invest the money in that particular business only. This is called Al-Mudarabah al-Muqayyadah (restricted Mudarabah).
2- al- Mudarabah al-mutlaq” (unrestricted Mudarabah):
If Rabb-ul-Mal has left if open for the Mudarib to undertake whatever business he wishes, the Mudarib shall be authorized to invest the money in any business he deems fit. This type of Mudarabah is called al- Mudarabah al-mutlaq” (unrestricted Mudarabah).
A Rabb-ul-Mal can contract Mudarabah with more than one person through a single transaction. It means that he can offer his money to A and B both, so that each one of them can act for him as Mudarib and the capital of the Mudarabah shall be utilized by both of them jointly, and the share of the Mudarib shall be distributed between them according to the agreed proportion. In this case both the Mudaribs shall run the business as if they were partners inter se.
The Mudarib or mudaribs, as the case may be, are authorized to do anything which is normally done in the course of business. However, If they want to do an extraordinary work, which is beyond the normal routine of the traders, they can not do so without express permission from the Rabb-ul-Mal.