What is passive income?
Passive income refers to earnings generated with minimal ongoing effort. It allows individuals or businesses to earn money without continuous active involvement.
What are examples of passive income?
Examples include rental income, dividends, interest, royalties, and income from digital products.
Why is passive income important?
It provides additional income streams and reduces reliance on active work.
Can businesses generate passive income?
Yes. Businesses generate passive income through scalable products, licensing, or investments in other ventures.
How is passive income taxed?
Tax treatment depends on the type of income and local regulations.