What is known as a capital income, with examples

Question

Business

Sharon Fleming

2 February, 11:49

What is known as a capital income, with examples

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Answers (2)

Know the Answer?

Gordo · Answer 1

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.

Aron Whitehead · Answer 2

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.