BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
expenses
|
|
|
payments
|
|
|
cash inflows
|
|
|
savings
|
Detailed explanation-1: -Active income is defined as salary earned from specific duties or services rendered according to an agreed task, within a specified time frame. Examples of active income are salaries, tips, fees, commissions, and allowances from the companies you provide services to.
Detailed explanation-2: -Active income, generally speaking, is generated from tasks linked to your job or career that take up time. Passive income, on the other hand, is income that you can earn with relatively minimal effort, such as renting out a property or earning money from a business without much active participation.
Detailed explanation-3: -The two main types of income are passive and active. Passive income includes money earned from interest, dividends, and rental property. Active income includes hourly wages, salaries, and commissions.