What Is a Passive Investment

question 22

Multiple Choice

What is a passive investment?

• A) The owner is not attempting to exert influence over the company.
• B) The owner owns between 15-25% of the company's outstanding shares.
• C) The owner uses the equity method of accounting for the investment.
• D) The owner is gradually attempting to gain control over the company.

---

Definitions:

Wage Supplements

Additional benefits or payments made to employees on top of their regular wages, such as health insurance, retirement contributions, or bonuses.

Personal Income

The total earnings received by individuals, including wages, salaries, and other forms of income.

Property Income

Income from the ownership of real property and financial holdings. It takes the form of profits, interest, dividends, and rents.

Personal Income

The total amount of income garnered by individuals from all sources before taxes.