what do you mean by factor and non factor income
Answers
Explanation:
Factor Payment (Income):
1. It comprises rent, wages, interest and profit.
2. It is received in return for rendering productive service.
3. It is an earned income (earning concept).
4. It is bilateral payment.
5. It is included in national income.
Non-factor Payment (Income):
1. It comprises gifts, subsidies, donations, scholarships, etc.
2. It is received without providing any good or service in return.
3. It is an unearned income (receipt concept).
4. It is unilateral payment.
Answer:
Explanation:
Factor Payment :
1. It comprises rent, wages, interest and profit.
2. It is received in return for rendering productive service.
3. It is an earned income (earning concept).
4. It is bilateral payment.
Non-factor Payment :
1. It comprises gifts, subsidies, donations, scholarships, etc.
2. It is received without providing any good or service in return.
3. It is an unearned income (receipt concept).
4. It is unilateral payment.