The owner of your local KFC franchise has had a good year with rising revenues and reduced operating costs that resulted in a personal income of roughly $100,000. Approximately one-third of that was taken for provincial and federal income taxes, and another third went to pay for mortgage, car payments, food, clothing, and other
Necessities. What is the remaining third called?
A)windfall
B)discretionary income
C)bonus
D)disposable income

Question

Quizplus · Accepted Answer

Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities have been paid. In this scenario, after the owner pays taxes and covers necessities, the remaining income is used at their discretion, hence it is called discretionary income.

The Owner of Your Local KFC Franchise Has Had a Good