Question 8 • SHS Alt Personal Finance - 2021
Passive income is money earned from an asset or work that can continue generating income without ongoing active labor. Royalties from a book can be paid each time it is sold or used, so receiving book royalties is the best example. A salary requires working for an employer, while selling stocks or a motorcycle is generally a one-time sale rather than recurring passive income.
AI-written and checked against the verified answer.