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24 May, 09:26

What is known as a capital income, with examples

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  1. 24 May, 11:49
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    Capital income is income generated by an asset over time, rather than from work done using the asset.

    Explanation:

    Capital income is the income generated through the possession of wealth, such as rental income, gains from selling an asset, dividend income, certain interest income, proceeds from a life insurance contract, and the share of profits of an investment fund.
  2. 24 May, 12:36
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    Capital income is income generated by an asset over time, rather than from work done using the asset, according to Investopedia. If a farmer buys land for a certain amount of money and sells it at a profit after one year, the difference in the prices is capital income.
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