Money Received by an Individual for Personal Effort Is Classified

question 111

Multiple Choice

Money received by an individual for personal effort is classified as ______________ income.

• A)passive
• B)earned
• C)portfolio
• D)excluded
• E)capital gains

---

Definitions:

Fixed Cost

Overhead expenses that remain constant regardless of the volume of goods or services produced by a business.

Sales Commissions

A form of payment to a salesperson for services rendered, which is often calculated as a percentage of the sales they have generated.

Chief Financial Officer

The senior executive responsible for managing the financial actions of a company, including financial planning, management of financial risks, and financial reporting.

NPV

A financial metric used to assess the profitability of an investment by calculating the present value of expected future cash flows.