Wealth Differs from Income Because

question 21

Multiple Choice

Wealth differs from income because

• A)income is a stock and wealth is a flow.
• B)wealth is derived from income.
• C)income is what you earn and wealth is what you own.
• D)income is what you own and wealth is what you earn.
• E)wealth is preferable to income.

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Definitions:

Concurrent Property Ownership

Ownership of property by two or more parties at the same time, where each party has an undivided interest in the whole property.

Subrogation

The legal process by which one party steps into the shoes of another party, to pursue their rights against a third party, usually in insurance claims.

Indemnity

A contractual obligation of one party to compensate the loss incurred by another party due to the acts of the indemnitor or any other party.

Incontestability Clause

A clause in insurance policies that makes the policy non-contestable after it has been in force for a certain period, except under certain conditions.