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Give Two Examples of Recurring Revenue in a Business Model

question 22

Essay

Give two examples of recurring revenue in a business model for a successful product-making company and services company respectively. How is the recurring revenue structured in each case?


Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of an additional dollar of income that is paid in tax.

Progressive Tax

A tax system where the rate of taxation increases as the taxable income or amount increases, placing a higher burden on wealthier individuals.

Income

The financial gain (earned or unearned) accruing over a given period of time.

Federal Excise Tax

A tax imposed by the federal government on the sale of specific goods and services, such as tobacco and alcohol.

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