3.1- Income

What is income?

• Money received for labor or products

• A type of expense

• A form of debt

• A savings account

Which of the following is an example of active income?

• Royalties from book sales

• Dividends from investments

• Salary from a job

• Rental income

Which of the following is a source of passive income?

• Teaching

• Construction work

• Royalties from book sales

• Customer service work

Which of the following is a benefit of passive income?

• Requires constant effort

• Provides a stable income stream

• Involves high risk

• Is only available to business owners

What is a key difference between active and passive income?

• Active income requires less time

• Passive income requires more effort

• Active income involves direct work

• Passive income is only for retirees

Which of the following is a source of active income?

• Independent merchandise selling

• Part-time business ownership

• Teaching

• Leasing equipment

Which of the following is a source of investment income?

• Salary from a job

• Interest from savings accounts

• Rental payments

• Lottery winnings

Which portfolio is built with a focus on creating recurring passing income?

• Growth Portfolio

• Value Portfolio

• Income Portfolio

• Defensive Portfolio

What is the main focus of a Value Portfolio?

• Buying low-volatility stocks

• Buying undervalued stocks

• Creating recurring income

• Reducing financial risk

Which of the following is NOT a benefit of having multiple income streams?

• Reduced financial risk

• Increased savings potential

• Flexibility and control

• Personal growth

• All of these are benefits