Income generated from an investment activity is primarily attributable to invested capital rather than the owner's personal involvement in the activity.

Question

Quizplus · Accepted Answer

Income generated from an investment activity, such as rental income from a property or returns from a stock portfolio, is primarily attributable to the capital invested in the activity rather than the owner's personal involvement. While the owner may need to initially invest time and effort to research and choose the investment, once the investment is made, the income generated is based on the capital invested.

Income Generated from an Investment Activity Is Primarily Attributable to Invested