Active vs Passive Income Knowledge

What is passive income?

• Money you earn from working full-time

• Money you earn without having to work all the time

• Money you save from not spending

What is the first step in generating passive income from real estate investments?

• Find tenants

• Save money for a down payment

• Buy a property

• Advertise your property

Which type of stock pays you part of the company's profits regularly?

• Growth stocks

• Dividend stocks

• Penny stocks

• Blue-chip stocks

Which of the following is an example of a digital product?

• A house

• A car

• An e-book

• A television

How do you earn money through affiliate marketing?

• By creating physical products

• By selling your own services

• By promoting other people’s products and earning a commission on sales

What is one of the benefits of starting to invest in passive income streams early in life?

• You will have to work more hours

• The power of compound interest helps your money grow over time

• You can avoid paying taxes

• It’s a guaranteed way to get rich quickly

Why is it important to understand the tax implications of passive income?

• Because you will not have to pay any taxes

• To know how to manage taxes and save money

• Because taxes are not applicable to passive income

Which of the following is considered active income?

• Income from rental properties

• Salary from a job

• Dividends from stocks

• Interest from a savings account

Why does an online bookstore like Amazon provide a detailed description for each book?

• To promote their ongoing sales and discounts

• To display reviews from customers who have read the book

• To provide information about the book's content, author, and publication details

• To share links to their social media pages