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Question : Subsidies are ____________ income. Profit is _________ income.

Option 1: Factor, transfer.

Option 2: Transfer, factor.

Option 3: Transfer, transfer

Option 4: Factor, factor.


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Transfer, factor.


Solution :

Factor income is compensation obtained in exchange for delivering productive service. Example- Rent, wages, interest and profit.
Transfer income is compensation received in exchange for no services (or goods).
Example- Old age pension, schlorships, unemployment benefits.
Hence, Option B is correct.

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